Numerous predictions are being made about the 2020/2021 National Budget to be announced today at 7.30pm.

Numerous predictions are being made about the 2020/2021 National Budget to be announced today at 7.30pm.

Dialogue Fiji believes immediate policy response, in the circumstances, needs to target vulnerable individuals and businesses.

Executive Director Nilesh Lal says it is clear that the government will need to make significant allocations for payment of unemployment benefits to households, deferment of utility bills, and mortgage payments and wage subsidies in the case of workers employed in struggling SMEs.

Lal adds there should also be an allocation for the reskilling of those unemployed so that they can be deployed in other roles that are on-demand in the labour market.

He adds this can assist in addressing the deteriorating conditions in the labour market.

The executive director says in the case of struggling SMEs and other affected businesses, emergency liquidity should be made available.

He adds for the larger employers that are struggling to keep afloat, equity investment by government and state-controlled entities such as FNPF should be considered.

The Director adds, rescuing businesses remains the most sustainable way of saving jobs and households’ incomes, and retaining some level of productive capacity in the economy.

Dialogue Fiji acknowledges that given the economic realities and the uncertainties which lie ahead, preparing the 2020-21 national budget would have been very challenging for the Ministry of Economy.