Grassroots Need to be Prepared for Impact of Government Debt: NGO
Some employers owing millions: Agni Deo Singh
Civil society group PANG (Pacific Network on Globalisation) has raised concerns on whether ordinary Fijians are adequately informed and prepared for what is likely to be “very difficult times” in light of Government’s expected austerity measures aimed at reducing Fiji’s $10billion national debt.
The Suva-based NGO held a Fiji Debt workshop early this week, attended by representatives of other civil society groups.
“I think the discussions on debt and debt servicing repayments is not just the business of our Government or Government ministries, it should be the interest of ordinary families and citizens of Fiji,” said PANG co-ordinator Maureen Penjueli, in an interview with the Fiji Sun.
“Because at the end of the day, it’s really about how it’s going to affect your personal budgets. And what you can spend.
“If you’re looking at doing savings under current conditions, what does that mean - should we have a savings public awareness at this point in time?
“Because we know the cost of living is rising rapidly so whatever measures the government will take, we need to be aware of how that will affect the ordinary person.”
Currently standing at an historical high figure of $10 billion, the national debt has been a cause for concern in many quarters and in last week’s National Economic Summit to discuss the nation’s economy, the Government acknowledged how it has severely limited its fiscal policy space.
It also acknowledged the need to strengthen financial management and discipline by reducing wastage.
In its Medium Term Financial Strategy released in February this year, the Government has made it clear it would put the brakes on overall Government spending through a handful of fiscal reforms mainly because of the ‘urgent’ need to address the high public debt. What this would mean for ordinary citizens would become clear in July, when the Government delivers its 2024-2025 National Budget.
However, preparation, Ms Penjueli said, needed to be on people’s minds, magnifying the role that civil society groups play in the communities they worked in.
“We need to increase financial literacy in households. I think the Government is signalling very quickly that things are going to be very difficult, particularly in the short term. So I think family budgets will become quite crucial, household budgets will become crucial,” she said.
“What do we spend our money on if we want to have a savings culture, how do we cultivate the savings culture, and so this is a role that civil society groups and a lot of our development agencies can play - is how to help ordinary families to undertake budgets while government manages the national budget.
It is understood that other NGOs are planning to hold community awareness workshops on Fiji’s debt burden.