Unity Fiji, NFP, FLP and People’s Alliance concerned about national debt level

Unity Fiji, NFP, FLP and People’s Alliance concerned about national debt level

By Rashika Kumar , Navitalai Naivalurua
Thursday 01/12/2022

Unity Fiji Leader, Savenaca Narube says if we do not improve the efficiency of the expenses by reducing wastage, we are going to hit a brick wall.

He has highlighted this in the economic debate on fijivillage Straight Talk with Vijay Narayan while responding to a question on Government debt that was expected to be at $9 billion in July this year and what the parties will do to reduce it if they get elected into Government.

Narube says the debt has been created by spending more than you earn and this Government has been a spending Government right from Day One.

He says he has worked with them for two and a half years and they started to spend very seriously that has created this debt.

Narube says the debt payment crowds out the essential spending for the country.

He says 44 cents for every dollar that we give Government in taxes are channelled in paying debt.

He says more and more money will be spent to pay debt than for essential spending.

National Federation Party Think Tank leading member, Richard Naidu says the Fijian Government debt is something that cannot be fixed in one or two years and people have got to stop pretending that the Government has all the answers.

He says the debt is higher than $9 billion with another billion dollars on top of that, which is contingent liabilities of the Government.

Naidu says contingent liabilities are debts owed by large corporations such as Fiji Airways and Fiji Sugar Corporation which they are not really in a position to pay.

He adds we cannot avoid the need to borrow, probably from multi-lateral institutions at low rates of interest, as this Government has just begun to learn to do, and that is going to be the likely position for the next couple of years.

Naidu says we will need a National Economic Summit, ideas and contributions from the private sector, and from all the political parties on how we will manage the problem of debt.

Fiji Labour Party Leader Mahendra Chaudhry says Government debt is a major concern and unfortunately, it has ballooned over the years to unsustainable levels.

He says in their first year in leadership, they will borrow locally to fund the deficit and they will not be borrowing abroad.

He says they will also cut back on unnecessary expenditure and will fund the deficit with local resources.

People’s Alliance Deputy Leader, Manoa Kamikamica says the Government has failed to diversify the economy.

He says we need to diversify the economy and the Government needs to reduce wastage.

Kamikamica says they will take the approach to be conservative and try and introduce initiatives within the current envelope of the national budget.

He says this means the share of foreign and domestic debt remains the same but because they will introduce some taxes there will be a slight reduction in the net deficit in the percentage of the Gross Domestic Product from about 7.4 percent to 7.2 percent.


Click here for full Elections Coverage




Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
IN DEPTH
Womens Rugby World Cup 2022
Quarter-final qualification is now the goal for the Rooster Chicken Fijiana 15’s following their 21-17 victory against South Africa.
101 days ago

Queen Elizabeth II passes away
Queen Elizabeth II, the UK's longest-serving monarch, has died aged 96, after reigning for 70 years.
131 days ago

Fiji wins Melrose Cup after 17 years
Fiji wins the RWC 7s title after 17 year drought
133 days ago
FEATURE NEWS
South Africa is a tough opponent - Gollings
Fiji Airways Men’s National 7s coach Ben Gollings says the team is exactly where they want to be and are looking forward to meeting South Africa in ...
2 hours ago
LATEST NEWS
Fijiana 7s to face Australia in fifth-place playoff after 40-7 victory over Japan
The Fiji Airways Fijiana 7s have defeated Japan 35-7 in the fifth-place semi-final of the HSBC Sydney 7s. Former Gospel High School student, ...
12 minutes ago

Close to a ton of marijuana uprooted from 7 farms in Kadavu - A/ACP Driu
Close to a ton of marijuana that was uprooted from 7 farms in Kadavu were destroyed in accordance with approved court destruction orders. Chief ...
48 minutes ago

35-year-old man missing in waters between Laucala Island and Taveuni
A 35-year-old man is missing in waters between Laucala Island and Taveuni following an alleged dispute out at sea on Friday afternoon. Police ...
2 hours ago

Early birthday present for 4 year old Eli Tamanisau
It was an early birthday present for 4-year-old Eli Tamanisau as he will now be able to live a longer life after a successful heart surgery at the ...
2 hours ago

More than 100 plants, dried leaves and branches believed to be marijuana discovered in Tailevu
More than 100 plants, dried leaves and branches believed to be marijuana were discovered during a raid conducted by the Eastern Division Police task ...
2 hours ago

TOP