Fiji’s Minister for Finance Professor Biman Prasad says the redeployment of $28.08 million within the 2024–2025 national budget was driven by new government priorities and earlier cost underestimations, not mismanagement or cost overruns.
Responding to a written question in Parliament, Professor Prasad said the cabinet had approved the reallocation of funds under the Financial Management Act 2004, which allows for budget adjustments with Cabinet endorsement.
Of the total amount redeployed, $23 million was transferred to the Ministry of Education to boost its Transport Assistance program. This was to fully subsidise student bus fares following the increase in blue and yellow card rates in September 2024. Under the previous fare structure, $37 million had been allocated for student transport subsidies when the budget was announced in June 2024. This figure had to be revised to cater for the new fare rates introduced three months later.
“The increased costs were not included in the initial budget as the fare review was made after the 2024–2025 budget was finalised. Given the importance of transport assistance for students, the Government had to prioritise funding through redeployment,” Professor Prasad said.
The remaining $5.09 million was reallocated to the Ministry of Local Government, of which $4.087 million was directed toward completing Govind Park in Ba, after initial funding proved insufficient.
Professor Prasad said the first phase of the Govind Park project, which began in 2018, involved the construction of the pavilion at a total cost of $4.91 million. This phase has been fully completed. The second phase, currently underway, is expected to be completed this year. However, the initially allocated $2 million for this phase has already been fully utilised, resulting in a shortfall.
An additional $1 million was allocated for Local Government Elections Logistics, supplementing the $500,000 initially set aside. Professor Prasad said the extra funding would cover preparatory costs such as voter awareness, polling station setup, and administrative support, in anticipation of local government elections later this year.
The funds were sourced from delayed or underutilised projects across various ministries, including:
- $5 million from the Ship Building Revival Project
- $10 million from Merit-Based Higher Education (Level 7 Local)
- $10 million from Higher Education (Level 7 with Minimum Cut-Off Mark)
- $3.087 million from the Fiji Roads Authority (FRA)
This redeployment marks the first such movement of funds under the 2024–2025 national budget.
