Deputy Prime Minister and Minister for Finance Professor Biman Prasad has stated that the annual inflation rate last year was 5.1 percent and the inflation rate for January has already decreased to 3.7 percent, showing a very positive trajectory.
While speaking during a press conference following the 2-day Pacific Islands High-Level Conference with the International Monetary Fund in Nadi, Professor Prasad says debt levels were high when the government came into power, and they were significantly exacerbated by COVID.
However, he says the trajectory towards high debt levels was present before COVID, and the economy had also contracted in 2019.
Professor Prasad says in the 2023-2024 National Budget, the government ensured a focus on fiscal consolidation, addressing the needs of the vulnerable and the poor, and enhancing domestic resource mobilisation.
The Deputy Prime Minister says they cannot achieve an acceptable level of debt in terms of the debt-to-GDP ratio over the next 10 years solely by cutting expenditure and raising revenue.
He says there also needs to be growth, and many measures in the budget were aimed at creating an environment conducive to more investment and growth.
Professor Prasad adds that the government’s three-pronged approach has been effective.
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