FLP: Budget puts us at greater risk

THE 2020-2021 National Budget is not an “overhaul” or “new normal” as claimed by Economy Minister Aiyaz Sayed-Khaiyum.

This is the view of Fiji Labour Party (FLP) leader Mahendra Chaudhry, who said the new national budget was “more of the same for the FijiFirst party”.

“It is a budget that further exposes Fiji to global shocks and increasing dependence on international bailout. It puts us at greater risk,” Mr Chaudhry claimed.

He said the budget was premised on trickle-down economics.

“That is, if you help the rich, they in turn will help the poor. But our experience in the past decade with rising poverty levels and high unemployment has shown that this theory does not work,” he claimed.

“More attention should have been given to the people with a view to agricultural and export-focused production. It is obvious that the minister has not learnt his lesson from the impact of COVID-19 on our economy. He has ignored agriculture, fisheries and forestry and has once again put all his eggs in the one basket by continuing to focus on tourism and consumption-based growth.”

Mr Chaudhry said the extent of debt and debt repayments were unsustainable.

“It will put pressure on future spending on social services and render substantive development in Fiji very difficult. The Government must not resort to privatisation to manage the debts as this would jeopardise future revenue streams and essential services to the people.

“The low interest loans from multilateral partners must be weighed against the compromising of sovereignty and being drawn into a foreign currency debt trap.”

He said if the Government was serious about diversifying the economy, the budget would have shown a much stronger leaning towards agriculture and renewable resource development and not such a heavy commitment to resurrecting the tourism sector.