Decline in government revenue collection
January 7, 2021 7:25 am
Government revenue collection in 2020 took a hit due to lower economic activity in the midst of COVID-19.
According to the Reserve Bank of Fiji annual Economic Review, Value Added Tax – the largest chunk of government revenue – fell by 38.6% up to November last year.
In the same period, bank loans for consumption fell by almost 28%.
The Review notes lending to the wholesale, retail, hotels & restaurants sector fell by 21%.
However, the biggest drop in loans were for private individuals which saw a decrease of 51.4%.
The Reserve Bank says this is a result of five consecutive months of low demand for private loans
New lending for investment purposes also fell with the building & construction sector seeing a 24% drop, and close to 21% for real estate.
The RBF’s Job Advertisement Survey registered a 65.7 percent decline in vacancies in the year to November, evidence of dampened labour market conditions.
This was underpinned by reduced recruitment intentions across all major employment categories.