Fiji’s Budget ‘just what the doctor ordered’: ANZ
July 27, 2021 5:43 am
Fiji’s 2021-22 Budget was framed under the most challenging set of circumstances says ANZ’s international economist Kishti Sen.
Sen says the Bainimarama government has shown its economic credentials and delivered a strong budget that meets the national interest by protecting the health of all Fijians and setting a clear pathway towards economic recovery.
Sen says given that the economy is in severe recession, back-to-back stimulus budgets was a sensible thing to do.
As the public sector expenditure accounts for 25% of GDP, he says sharp withdrawal of demand would have hurt confidence and led to protracted economic hardship.
Sen says the budget is focused on providing liquidity support to enterprises who are doing it tough.
This initiative, he adds is critical for viable businesses to survive and be ready to employ people when the upturn arrives.
Sen highlights that the fundamentals of the Fijian economy remain sound and stronger growth is expected from 2022 bringing the debt to GDP ratio down over time.