‘State spending money wastefully’

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Former RBF governor Savenaca Narube. Picture: ELIKI NUKUTABU/FILE

DUE to past mismanagement of the economy, Fiji’s debt crisis has jumped from 50 per cent to 60 per cent of GDP (gross domestic product), says former Reserve Bank governor Savenaca Narube.

He said because of the extent of the COVID-19 crisis and the urgent response needed, now was not the time to look at what had led to the exorbitant level of debt but to find immediate relief for those most impacted.

“Unfortunately, due to our past mismanagement of our economy, we were saddled with a large debt before the virus,” Mr Narube said.

“Since the crisis began, debt has jumped from 50 per cent to 60 per cent of GDP in a matter of months because of the large decline in government revenue and additional expenses due to the crisis.

“We cannot do anything about that. We are therefore left with two choices.

“Bemoan our high debt position, do nothing and let our people suffer, or we increase debt prudently to ease the pain that people are facing.

“As a pragmatist, I would opt for the second option any day.

“As I have stressed so many times, Government must use this opportunity to restructure its budget and slash wasteful expenses, remove ineffective programs and delay non-urgent projects.

“People cannot be suffering while the Government continues to spend money wastefully.”

Questions sent on Wednesday, May 6 and again yesterday to Attorney-General and Economy Minister Aiyaz Sayed-Khaiyum and Prime Minister Voreqe Bainimarama for comment on the suggestions made by Mr Narube remain unanswered.

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