Finance Minister Professor Biman Prasad says he is aware his critics have lambasted the Coalition Government’s economic policies, but he is running Fiji’s modern economy based on prudent financial practices.
Prof Prasad said his version of running a modern economy did not extend to “voodoo economics”.
“I know some people say, ‘oh, Biman Prasad doesn’t know how to run a modern economy’,” he said.
“Their version of running a modern economy is this borrowing, reckless spending, and populist policies. That’s their version of running a modern economy.”
Prof Prasad said this was not his version of running a modern economy as this required prudent financial management, fiscal policy, and responsible expenditure policy, which was what the Government had done in the last budget.
He said this was what they would focus on in the coming budget.
“This is a very important point. There are one or two people who go around saying that this Government doesn’t know how to manage a modern economy, because they had no idea what needs to be done in a modern economy.
“Their vision of running a modern economy is what I call ‘voodoo economics’.
“That means you borrow, and you spend. If we have to borrow, we will borrow.”
Prof Prasad said continuing the “politically popular” policy would bring pain and eventually, the people would have to pay.
“We maintain our fiscal position that is reasonable, that we borrow reasonably, that it’s manageable so that in the future, the pain is not as big as what it could be. What we are taking is a very responsible economic management approach.”
