Former finance minister and National Federation Party leader Professor Biman Prasad says Government’s immediate priority must be protecting jobs, incomes and overall economic stability, as discussions continue over possible public sector pay cuts if the global fuel crisis escalates and puts further financial pressure on Government.
His comments come after Prime Minister Sitiveni Rabuka raised the possibility of salary reductions as part of wider measures should fiscal pressure from rising fuel costs continue.
Prof Prasad said while the economic outlook remained uncertain, any response must first focus on safeguarding livelihoods rather than reducing wages.
“We must make sure that people don’t lose income,” he said.
He said protecting employment and income security was essential to maintaining stability in households and the wider economy, particularly as fuel price volatility continued to affect transport and production costs.
He warned that the impact of the global fuel situation was unlikely to ease quickly, noting that international supply and demand pressures were likely to keep prices elevated for an extended period.
He said Government would need to carefully balance fiscal pressures with the need to keep economies functioning, particularly in small import-dependent economies like Fiji.
Prof Prasad said Governments should look at managing expenditure more efficiently.
He added there should be no conferences or extra spending, and that ministers and civil servants must follow this to save funds to avoid cutting civil service pay.
He said even small savings across Government spending could help redirect resources toward priority areas and vulnerable groups.
