The Government’s total expenditure is $4.3 billion with a projected revenue of $3.7 billion.

Finance Minister, Professor Biman Prasad says the fiscal deficit is set at $639 million equivalent to 4.8% of the Gross Domestic Product.

Professor Prasad says this is a major reduction in the deficit as in the last four fiscal years, the average deficit has been nine percent.

He adds this deficit, is higher than expected and Fiji is at a critical point.

Professor Prasad says we must continue to cushion the effects this has on the ordinary people and catch up on all the years lost without critical investment in infrastructure and maintenance.

“If we do not do this, our future path of economic growth will be affected. And at the same time, we are pursuing further fiscal consolidation. That is better value spending and cost savings to ensure that we urgently bring down government debt parameters to a sustainable level. But to achieve this, we will have to swallow some bitter medicine now. Otherwise, we could end up in the worst financial situation.”

Professor Prasad says every government has to collect taxes to fund public expenditures.

He adds it is a delicate task to ensure that they collect the right amount and do not overtax the economy and the people.

The Finance Minister says revenue adequacy is critical to the running of the government and it is equally important that in this process of collecting revenues, the tax system is simple, easy to administer, transparent, efficient, and equitable.

[ Source: Fiji Government ]