Govt spending must remain or be increased: Dr Kishore
May 3, 2021 4:50 pm
There are suggestions that the government takes on more loans to maintain ministerial allocations and keep the economy working.
Economist Dr Rohit Kishore says consumer spending and private sector investment have been subdued in the past year, and the recent lockdowns – including the closure of businesses has not helped.
“The money must go to the ministries, their budgets should not be cut because they are the arms and the legs that are going to move this. The government has to take the lead to turn around the economy together with the private sector.”
Dr Kishore says no less than half a billion dollars must be allocated in capital expenditure to spur public and private sector growth.
Minister for Economy, Aiyaz Sayed-Khaiyum has also confirmed that businesses having to close for a prolonged period in the Suva/Nausori corridor as well as the Western Division, has affected government coffers.
“The past couple of weeks has had an enormous impact on government’s ability to cater for the revenue already factored into the budget.”
According to Dr Kishore, the government is in the best position to keep the economy buoyant in the short to medium term.