National debt worries civil society groups
CONCERNS over Fiji’s national debt situation has prompted collaboration among a number of local and international civil society organisations to commission a “Fiji Debt White Paper” to examine the issue.
The Suva-based Pacific Network on Globalisation (PANG), Third World Network (TWN) and national civil groups collectively issued a statement this week stating “this as a timely need for the inclusion of civil society and state actors in contributing to how the Fiji Government manages its debt levels.”
“Fiji’s debt levels reached above 90 per cent of GDP at its peak during COVID-19, and will remain elevated at more than three quarters of the GDP in the foreseeable future,” the group stated.
“This will impact monies collected by the government, having to be channelled to pay for the hefty interests on its debt, as well as to pay down on the principal as they become due.
“Whilst the Fiji Government has responded by raising taxes and being cautious with its spending, we see this having a direct impact on Fijian communities through increasing the cost of living with the recent tax hikes and indirectly through reduced provision of services like health, education, and other social services.”
The group is calling for the formulation of a clear development plan and priorities as “paramount” to “transform the economy, raise productivity and incomes, and deepen its productive capacity, resulting in higher paying jobs with thriving industries and businesses.”
It also suggested the consolidation of Fiji’s public debt management law.
“Fiji’s legal framework for debt management is spread across various laws, directives, and circulars, may pose challenges in terms of transparency, accountability, and efficiency. A consolidated public debt management law can help in this regard and strengthen the implementation of integrated strategies, risk assessment frameworks, and debt sustainability assessments.”