Revelations from World Bank is a necessary evil
Now is not the time to point fingers, but like the summit in the next two days, the think-tanks should look for the best mathematical solution to fix our heavu debt problem.
The Fiji Public Expenditure Review 2023 report released by the World Bank has highlighted the urgent need for Fiji to take action to reduce its debt levels.
The report should be taken seriously, and the recommendations implemented thoughtfully.
The National Economic Summit that is underway should set the platform for robust discussions on this issue.
The COVID-19 pandemic, natural disasters, and the ongoing Russia-Ukraine war have contributed to Fiji’s current financial dilemma.
The debts were incurred to keep the economy moving, but if left unchecked, they are likely to threaten Fiji’s economic recovery.
Urgent reforms, starting with the Government’s biggest employer, are needed.
The civil service may have to take a pay cut, and allocations per ministry might have to be reviewed. Whatever the Government finally decides, people should remain the priority.
The impact on the people should be minimal. This will reduce poverty and unemployment.
Incentives such as paying part of the debts for those badly affected by COVID-19 and natural disasters and paying back the Fiji National Provident Fund for the funds borrowed during COVID-19 and Tropical Cyclone Winston should also be considered. Growth in the private sector is also needed to create employment and sustain livelihoods.
All hands are needed on deck to get Fiji out of the doldrums.
It is time for the Government to take decisive action that would be critical to bringing Fiji’s debt back to pre-pandemic levels.
Drastic actions are needed, and suggestions by experts to ‘right size’ Government will be a challenge – but it must be done.
Fiji must take urgent action to reduce its debt levels.
The Government must implement the recommendations of the World Bank report thoughtfully and with the people’s welfare as a priority.
Growth in the private sector is also needed to create employment and sustain livelihoods.
All Fijians must work together to get Fiji out of the financial mess and build a promising future for our children.
Renowned U.S. economist and author, Thomas Sowell, once wrote: “The real goal should be reduced government spending, rather than balanced budgets achieved by ever rising tax rates to cover ever rising spending.”