30 September, 2023, 6:10 am Central - 21°C Clouds

Urgent action needed to reduce Fiji’s debt level – World Bank

Urgent action needed to reduce Fiji’s debt level – World Bank

By Navitalai Naivalurua
Tuesday 18/04/2023
[Photo: File photo]

If Fiji’s debt level is left unchecked, it is likely to threaten the country’s ongoing recovery from the pandemic and sustainable economic development according to the World Bank’s Fiji Public Expenditure Report 2023.

The Bank says the report provides an in-depth analysis of Fiji’s domestic revenue, the cost of Fiji’s civil service, the value for money of public investments in infrastructure; and the viability of support to Fiji’s sugar industry.

They say the global COVID-19 pandemic, multiple severe tropical cyclones, and Russia’s invasion of Ukraine had resulted in an economic crisis of unprecedented scale in Fiji, with debt reaching 90 percent of GDP in 2022, exacerbating the lower economic growth trends that were emerging before the COVID-19 pandemic.

The World Bank is calling on the government to take decisive actions that will be critical to bringing Fiji’s debt back to pre-pandemic levels.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says they welcome the World Bank’s Public Expenditure Review report.

He says this comes when the new Government strives to get Fiji back on a path of fiscal sustainability and financial discipline.

Professor Prasad says the findings of the Public Expenditure Review will serve as an important consideration and input in this entire process of fiscal consolidation. He adds the Government would like to extend its gratitude to the World Bank for this comprehensive study and useful technical report. The Fiji Public Expenditure Report 2023 also offers recommendations of varying degrees of revenue increases and public expenditure cuts to reduce Fiji’s debt to 50 percent of GDP by 2032.

World Bank Country Manager for Fiji, Kiribati, Nauru, Samoa, Tonga and Tuvalu Stefano Mocci says they remain committed to Fiji’s development priorities, including working together towards Fiji’s economic recovery and resilience strengthening to better withstand future shocks.

The World Bank Group has six active projects in Fiji – totalling US$414 million in commitments – focused on transport, health, climate change, tourism, and digital connection.

fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
SCC directs apartment developer to suspend work at Princes Road
Construction work of the apartment blocks along Princes Road has been suspended. fijivillage News has received confirmation that the Suva City Coun...
14 hours ago
Govt forms taskforce to deal with land lease, renewal and premium issues
A taskforce has been formed by the Coalition Government to deal with land lease, renewal and premium issues faced by the farmers and ...
13 hours ago

Koronivia residents raise concerns regarding robberies while DPC East says they are working with the community to address it
Residents in Koronivia, Nausori are calling for more police presence in the community as there have been about 7 robberies in the area while a temple ...
13 hours ago

Thousands of secondary school students attend 2023 USP Open Day
Thousands of secondary school students flooded the USP Laucala Campus to decide on their career path from the informative Vodafone University of the ...
13 hours ago

USP is focused on making sure that students are placed first by getting quality education - USP VC
Under my leadership at the University of the South Pacific, we are focused entirely on being a student-centric University and making sure that ...
13 hours ago

1 in 50 children in classrooms has rheumatic heart disease - Dr Fong
1 in 50 children in the classrooms of Fiji has rheumatic heart disease which is highly common in children from 5 to 15 years old. This was ...
13 hours ago
Bainimarama and Qiliho’s trial
The trial of former Prime Minister Voreqe Bainimarama and suspended Commissioner of Police Sitiveni Qiliho begins
14 hours ago

EBayShop Online Recruitment scam
The Consumer Council of Fiji has issued a public alert about a group of individuals running a deceptive pyramid scheme known as “EbayShop Online Recruitment.”
5 days ago

7 Grace Road Group executives declared prohibited immigrants in Fiji after decisions by the South Korean Government and a request by Interpol
7 Grace Road executives in Fiji have been declared prohibited immigrants by the Fijian Government, it has been made clear through government ...
5 days ago