THE focus of the 2010 Budget should be to rehabilitate the agriculture sector and the commitment to continue improving the infrastructure, says economist Dr Biman Prasad.
The 2010 Budget will be announced on Friday when the State will reveal its financial plans and policies for next year.
Mr Prasad, the dean of economics at the University of the South Pacific, said the focus should be on rehabilitating the agriculture sector.
"The agriculture sector needs modernisation. For this to happen, the government ought to seriously consider the removal of import duty on tractors, water pumps, power generators, farm implements, etc," he said.
He added that the introduction of such resources could help advance agricultural production in the country.
"These important machines and tools are beyond the reach of many farmers. The imposition of import duty is senseless and subsequent governments have erroneously maintained this.
"The productivity of agriculture has been weak and will not improve if farmers don't use new technology" said Dr Prasad.
He said the State's initiative to borrow from the various EXIM banks for infrastructure-related projects was a good way to ensuring infrastructure development. According to Dr Prasad, many government policies had fallen short because of infrastructure or the lack of it.
"Borrowing to finance capital projects in key areas is a positive move. Our infrastructure has been neglected for the past 20 years and it is appropriate that we urgently invest in key infrastructure such as roads, ports, airports, etc, even if it means borrowing."
Dr Prasad also called for a social policy that will help the poor.
"The government should pay attention to appropriate social policies so that it can cushion the effect on the poor. It makes sense to empower the poor in this crisis situation as they will be the ones who could create demand in the economy."
He said "policies that put more money in the hands of the poor will help create further consumer demand and could have positive effects on the businesses".
