Tuesday, February 27, 2024
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Fiscal review will unearth tough choices: Naidu

The Fiscal Review Committee says it has been task to make some really hard choices and there is going to be some pain in the options that they are going to recommend.

Chair Richard Naidu said the Ministry of Finance is very clear on our mandate and at the same time very worried about Fiji’s debt.

He said that Fiji has debt to GDP ratio of almost 85 per cent and this well above the safe limit regarded for a country like Fiji, for its income level and size.

“We have got to have enough room to be able to borrow money in an event a natural disaster strikes; or we also got to have money to be able to borrow to do important things.”

“You know what the situation is now with the Water Authority of Fiji, the massive amount of work that needs to be done there. There is also the health sector, all these are going to require millions of dollars.”

Naidu said Government debt is so high, reaching a point where currently the financial markets are reluctant to lend to the government, even if the World Bank and the Asian Development Bank still backed the government.

“It’s a question of where we are prioritizing spending and where we are looking to raise money,” Naidu added.

Ilaitia Ravuwai
Ilaitia Ravuwai
Journalist | news@fijilive.com

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