Praneeta Prakash 
[Photo: Praneeta Prakash]
Fiji’s debt bill is eating into money the government needs for roads, infrastructure and other essential services.
Debt servicing now accounts for more than 10 per cent of total government expenditure.
Permanent Secretary for Finance Shiri Gounder says Fiji must urgently rebuild its financial reserves as rising debt costs and continued budget deficits leave the government with less room to invest in the economy.
Speaking at the launch of the World Bank Group’s first Fiji Economic Update, Gounder states the country faces tough decisions if it is to restore financial stability and support long-term growth.
He says the private sector must play a bigger role in growing the economy, but businesses need major reforms to remove barriers to investment and development.
Gounder also warns that people leaving Fiji, skills shortages, non-communicable diseases and drug-related problems could make it harder for businesses to find workers and grow.
He adds that these challenges, combined with global crises and rising economic pressures, make it important for Fiji to act now.
Gounder said rebuilding the country’s finances would require difficult decisions, public understanding and political support.
The World Bank’s report, ‘Creating Fiscal Space to Accelerate Growth’ examines the reforms Fiji needs to strengthen its economy and create better conditions for growth.
