Govt should not be running the economy like a Department of Finance – Dr Sen

ANZ Pacific Economist Dr Kishti Sen says the Government should not be running the economy like a Department of Finance with a single-minded focus on small deficits or even an aim to get a surplus because if you do that, you focus too much on increasing taxes by a large amount or reduce expenditure by a large amount.

He says this is not what the economy needs right now because the government is the insurer of the last resort for many things.

Dr Sen also says they understand fuel prices have reduced, but from their point of view, if Fiji wants to keep the prices of fuel below the $3 per litre mark, the barrel price should come down to below $90 and stay below $90.

He says based on their assessment, Fiji’s inflation is higher than what official estimates suggest.

Dr Sen says he thinks the compensation package should be a little bit larger because he fears that if the Government does not assist, they slow down the consumption expenditure, which means that people will have their employment hours reduced, or even some people will be laid off because the demand is not there any more.