It is inevitable that there will be increases in taxation – Prasad

It is inevitable that there will be increases in taxation.

This was stated by Deputy Prime Minister and Minister for Finance, Professor Biman Prasad while announcing the 2023 Fiscal Review Committee.

Professor Prasad says in the last decade, the government spent more than it earned on its daily operations.

He adds this is before it begins to borrow for capital investment.

Professor Prasad further says the Fiscal Review Committee’s task is to examine the overall setting of governments fiscal policy and make recommendations on how to re-balance government revenue and spending, grow the economy and ensure government is fiscally sustainable over the next decade.

He adds that public debt in 2015 stood at 46 percent of the GDP and it is now about 85 percent and still not under control.

Professor Prasad further says while coming into office, the World Bank shared its public expenditure review which is nearly finalised and the advice is alarming.

He says without significant changes to government finances, our debt to GDP ratio will approach nearly 100 percent in 10 years time.

Professor Prasad says they have to find billions of dollars to invest in health, water, road, climate adaptation, energy and housing.

The Fiscal Review Committee has 14 members which includes prominent lawyer Richard Naidu, former Governor of the Reserve Bank of Fiji Barry Whiteside, Fantasha Lockington, Dr Neelesh Goundar, Lisa Apted, Vani Catanasiga, Riyaz Ali, Matalita Katamoto, Kirti Patel, Pradeep Patel, Naibuka Saune , Viliame Takayawa and Meraia Volavola.