13 Jun 2019

Reckless spending behind cuts in Fiji budget reduction

From , 3:02 pm on 13 June 2019

An economist in Fiji says reckless government spending meant it had to cut expenditure in this year's budget.

Last week's 2019/2020 budget signalled a $FJ800-million reduction.

The University of the South Pacific's Neelesh Gounder says despite a record 11th year of projected growth, that figure has been revised down from 3.2 to 2.7 percent.

The government estimates the coming year's net deficit at 2.7 percent of GDP or over $FJ349 million.

Dr Gounder told Dominic Godfrey growth in the national debt coupled with a forecast reduction in government revenue is now having an impact on cash flow.

Fiji money

Fiji money Photo: RNZ Pacific