Unprecedented Infrastructure Development Stimulates Economy
This is part two of Nemani Delaibatiki’s response to Opposition leader Sitiveni Rabuka’s criticism of a Between the Lines report on the economic slowdown.
When a contraction or slowdown of the economy happens it is due to a number of reasons. Yesterday’s part one of this analysis talked about the significant impact of external forces on our economy.
However, Opposition Leader Sitiveni Rabuka, choosing to treat it lightly, accuses the Bainimarama Government of poorly managing the economy due to bad governance practices, and inconsistent and unrealistic policies that do not create the necessary confidence in investors (both local and foreign) to invest in the economy.
Mr Rabuka also talked about the national debt situation.
But through prudent fiscal management, the debt to GDP (Growth Domestic Product) ratio fell from 56.2 per cent of GDP in 2010 to 45.9 per cent of GDP in 2018.
The economy is expected to continue on that trajectory
About $500 million was spent on Tropical Cyclone Winston/Keni and Josie for rehabilitation. If it wasn’t for those disasters, debt would have been five per cent lower.
The bulk of Government spending has been on capital work and is reflected in the unprecedented level of infrastructure development. For those who travel the Suva-Nausori road will testify that the ride is a lot smoother and faster than before. In Nadi similar developments have happened.
In 27 years, from 1980 to 2006, the total capital expenditure was $3.5 billion and the debt increased by $2.6 billion.
In 11 years from 2007 to 2018 the capital expenditure was over $7 billion with debt increasing by $2.3 billion. The investment in capital works is paying off.
It has stimulated economic growth, helping the country to record 11 consecutive years of economic growth.
At the same time the Government had taken a leap of faith and political courage to roll out people-friendly initiatives. Mr Rabuka called them voting buying gimmicks.
To the thousands who benefitted, the initiatives were no gimmicks.
They were lifelines.
Ask Sera Ledua of Vesivesi, Kinoya. She was given $1000 from the Micro and Small business grants in 2017. Today she has a thriving garland, flower and money-lending business.
Ask Torika Tinai, Naluwai, Naitasiri, one of the first recipients of the $1000 grant for new born baby under the Parenthood Assistance Payment scheme, $500 upfront and $500 when the child goes to school.
Ask Litia Nadoku of Namosi who is grateful for 98 days of maternity leave instead of 84. And there are many others out there who are quietly grateful for the assistance. Not all of them are FijiFirst supporters . The assistance benefits those who meet the criteria irrespective of their politicial affiliation, ethnic and cultural backgrounds.