NFP leader says projected govt debt as of July 2020 to be around $6.18 billion

NFP Leader Professor Biman Prasad has claimed that the total debt for Government as of July 2020 is projected to be around $6.18 billion.

While speaking in parliament, Professor Prasad says in 2007 Fiji’s Gross Domestic Product stood at $5.447 billion and for the 2019 financial year, the value of GDP is $11.282 billion – 108% increase in GDP.

He says in 2007 Fiji’s total debt levels was $2.734 billion.

Professor Prasad says if Government fulfils its borrowing obligations of $1.019 billion under the 2019-2020 budget, as well as meets the projected loan repayment of more than $617 million, the total debt as of July 2020 is projected to be around $6.18 billion.

He adds this means debt levels increasing by 120% over the same corresponding period.

He says this means borrowing $3.446 billion in 13 years to increase GDP by $5.835 billion adding this would mean that the current Government borrowed $3.446 billion to increase GDP only to see the economy starting to strangulate.

Professor Prasad further says they can safely say that the GDP has been inflated to maximise borrowing to unprecedented levels.

He says he is afraid this is going to be unsustainable and all this government is doing is bequeathing a debt-laden nation to our future generations just to show a consumption-driven economy that is now grinding to a halt.