Fiji's government has been told it can no longer "hoodwink" the people and pretend the economy is fine.
Opposition leader Sitiveni Rabuka said the latest report on the economy from the IMF revealed the true state of the economy.
Mr Rabuka said the unprecedented reduction in government expenditure by a "whopping" $US394 million in the coming year was a clear sign of the desperation to address what he called the reckless spending of the past seven years.
Fiji was paying about $US27.5m each month to service debt - double what was being paid in 2006.
He said the cuts to government spending would further contract the economy when global and domestic demand was already slowing down.
Mr Rabuka said an earlier claim by Fiji's Minister for Economy that liquidity was in a comfortable position was now fully disproved.
The IMF team showed there was a "liquidity crunch" earlier this year with banks struggling to get funds to finance loans.