FIJI’S total debt in July 2020 is projected to be about $6.18 billion, says National Federation Party leader Professor Biman Prasad.
He said this could happen if Government fulfilled its borrowing obligations of $1.019b under the 2019-2020 budget and met projected loan repayments of more than $617 million.
Speaking in Parliament this week, he said in 2007, Fiji’s GDP stood at $5.447b.
“For the 2019 financial year, the value of GDP is $11.282b — a 108 per cent increase.
“This means debt levels increasing by 120 per cent over the same corresponding period.
“This means borrowing $3.446b in 13 years to increase GDP by $5.835b.
“This would mean that the current Government borrowed $3.446b to increase GDP only to see the economy starting to strangulate.
“One hundred and twenty per cent increase in borrowing to increase GDP by 108 per cent — that’s what you call the Bainimarama Boom Mr Speaker.
“And we can safely say that the GDP has been inflated to maximise borrowing to unprecedented levels, which I am afraid 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.”
Prof Prasad said for the past 10 years the Fiji economy had been run “like a really bad magic show”.
“It has not even been entertaining. Because we can all see how the magic tricks are done.
“Borrow money. Spend money. Give out freebies under any name.
“That is FijiFirst economics. That is the Bainimarama Boom.
“And all of this economics of illusion has worked to fool the people for 10 years. But now it is the end of the party.”
Prof Prasad claimed Government was $1b short of budgeted income and yet it still believed it would raise projected income of $3.49b this financial year.
“FRCS revealed its annual collection two months ago and it was $2.813b in tax collections.
“We are told it was well short of the initially revised target of $3.04b in June of this year.
“It was further revised downwards to $3.02b and again to $2.85b.
“But as of 31st July 2019, it fell acutely short in fulfilling its projections.”
