Minister for Economy Aiyaz Sayed-Khaiyum says they expect government revenue to increase when our international borders open up again which means that the government will be borrowing less.
The International Monetary Fund has said that they are concerned with Fiji’s high level of debt and says it signals that there is much less fiscal manoeuvring room than there was prior to the COVID-19 crisis however the good news is that most of Fiji’s debt during the pandemic is on concessional terms.
The IMF has also stated that the rise in public debt is really the mirror image of the large fiscal deficits that the government had to undertake in the course of the pandemic.
When asked by fijivillage on the management of the debt level considering the decline in government revenue, Sayed-Khaiyum says they are also looking at which sectors can contribute apart from tourism and sugar.
He says they are strategically looking at it from that perspective in terms of the long term growth and which sectors can contribute.
Sayed-Khaiyum adds they wanted to continue with certain socio-economic measures despite the borders being closed and zero tourists coming into the country.
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Sayed-Khaiyum says the first round of the $360 unemployment benefit not only provided stimulus to the economy but has also given people some relief and comfort.
He adds the IMF is basically saying that the government has done this because of the COVID-19 pandemic and they will be borrowing less when the economy opens up.
The Attorney General says he had a meeting with the IMF and they fully understand the situation we are in.
Sayed-Khaiyum says we were on a downward trajectory with respect to our debt to GDP ratio but the pandemic has precipitated the situation.
