Litia Cava 
[Photo: Supplied]
A fall in Reserve Bank of Fiji profits is unlikely to create a major gap in Government revenue, says Finance Minister Esrom Immanuel.
Immanuel states the government also builds contingencies into the budget. He says these cover possible changes in both revenue and expenditure.
“We monitor this closely with the Reserve Bank and during budget time we normally lay closely with them.”
This, according to Immanuel allows expected changes in RBF earnings to be considered before the budget is finalised.
Meanwhile, RBF Governor Ariff Ali states the bank gives the government a realistic forecast of its profits before each budget is prepared. If profits are expected to fall, that is communicated and factored into the Government’s planning.
Ali said the RBF’s contribution was small compared with Government’s total revenue. Government collects about $4billion dollars a year, while the RBF transfer is just above $100 million
The RBF earns much of its income from investments, meaning changes in global interest rates can affect its profits.
Ali says any expected decline in profits is communicated to Government as part of the annual budget process.
The government and the RBF have reiterated that a drop in central bank profits would affect one revenue streambut would not determine the government’s overall revenue position.
