BY SAMIE WAIKORI
Member of Parliament for North New Georgia, John Dean Kuku, has cautioned the Government for National Unity and Transformation (GNUT) over the country’s growing reliance on borrowing.
Speaking in Parliament this week, Kuku warned that persistent borrowing is undermining the country’s fiscal stability, reflected in recurring budget deficits.
“The debt is rising. Debt stock is already around $4.2 billion as of October 2025, about 30 percent higher than the previous year.
The government plans to borrow up to $1 billion more in 2026, including $300 million domestically and $700 million externally,” he said.
Kuku noted that although the debt-to-GDP ratio remains below the 35 percent benchmark, the overall trend is worrying.
He highlighted repeated deficits, expanding borrowings, and continued dependence on donor support as factors that contradict the government’s narrative of fiscal stability.
“We must be honest. We have lived beyond our means for many years. We have run deficits almost every year since 2016.
“We have used donor support funds and loans to mask the true scale of our fiscal problems. This budget does not fundamentally change that pattern,” he said.
The MP also referred to comments made by the Minister of Finance and Treasury regarding the potential of the mineral sector.
While he acknowledged the government’s commitment to the Extractive Industries Transparency Initiative (EITI) and the planned establishment of a mineral resource laboratory to verify content and pricing, he described these measures as long overdue.
Kuku further welcomed GNUT’s intention to create a sovereign wealth fund to ensure that revenue from non-renewable resources benefits future generations. He noted, however, that the proposal currently lacks detail.
“We continue to see examples of poor governance in existing mining operations, including weak enforcement, unresolved community grievances, and questions about the valuation of exports.
“Without strong institutions, it is better to leave minerals in the ground than to dig them up only to benefit a few and leave the environment and communities worse off,” he said.
For feedback, contact: [email protected]
