26 Nov 2012

Senior Fiji academic says 2013 budget could be platform for growth in elections proceed

4:29 pm on 26 November 2012

The head of Business and Economics at the University of the South Pacific believes it is worth Fiji going into deficit to rebuild its infrastructure.

The 2013 Budget sets out a deficit, or overspend, of 122 million US dollars

Professor Biman Prasad says improving roading, and the like, could pave the way for future growth, as long as the planned return to democracy goes ahead.

"So looking at this expenditure and this deficit from that point of view, could possibly put in the foundation for future growth in 2014 and 2015, but obviously will depend on how the whole process and how transparent and how committed the government is to see through the elections in 2014."

Professor Prasad says the extra funding for the electoral process ahead of the planned vote in 2014 also helps raise confidence in the economy.