2 Nov 2005

Fiji government asked to reduce debt level

11:08 am on 2 November 2005

The Fiji Chamber of Commerce and Industry is calling on the government to reduce its debts level so future generations of children are not burdened with paying it.

The Fiji Sun reports that the call comes ahead of Friday's tabling of the 2006 national budget.

The Chamber president, Taito Waradi, says the current debt level of 51% of the gross domestic product (GDP) is too high in anybody's terms.

Mr Waradi says the government needs to be careful of the effect it will have on future generations.

As well, he says the private sector has lost confidence and its investment has dropped from around 15% of GDP in the 1970s to about 5% now.

Mr Waradi says this is well below the average for investment level in developing countries of 20%.

He also says while the government's Strategic Development Plan for 2003/2005 cannot be faulted, it has not developed the mechanisms to implement it.