The Asian Development Bank says to sustain robust economic growth and enhance resilience, the government must concentrate on improving expenditure efficiency, enhancing budget execution, and advancing major private investment projects.

The ADB in its latest Pacific Monitor states that this includes streamlining immigration and business application processes, which are crucial in boosting new economic activities and facilitating the private sector’s increase in hotel capacity.

It adds that while the current emphasis on fiscal consolidation is necessary to reverse the trend of public debt, strengthening fiscal buffers and maintaining macroeconomic stability are equally critical due to Fiji’s susceptibility to economic shocks.

The ADB states that the limited fiscal space to absorb potential future disturbances remains a cause for concern, highlighting the need for ongoing efforts to improve expenditure efficiency.

It adds promoting growth-oriented spending and strengthening implementation capacity are paramount for fostering resilient and inclusive growth while reducing debt levels.

The ADB states that given the pivotal role of state-owned enterprises in the economy, measures such as broadening regulatory and governance standards, enhancing their capabilities, and establishing a framework to limit state-owned enterprise guarantees can create additional fiscal leeway for productive investments.

It adds ultimately, the focus should be on fiscal sustainability and prioritizing resources to support societal needs and infrastructure for inclusive and sustainable growth.

The ADB says the government may need to bolster implementation capacity to address the under-execution of capital spending.

It highlights that to achieve these objectives, the new budget and the Medium Term Fiscal Strategy provide fiscal targets to promote macroeconomic stability and achieve resilient growth.