GOVERNMENT could save up to $1billion annually by cutting wasteful expenditure and redirecting funds to essential services, according to Unity Fiji party leader Savenaca Narube, who argues that Fiji’s growing debt burden has severely limited the country’s fiscal flexibility.
Speaking on The Fiji Times’ online portal The Lens@177, Mr Narube said debt remained the country’s biggest economic constraint and warned that Government needed to create more “fiscal space” to respond to public needs.
“Debt is one that is overriding constraint, so you need to deal within that debt limitation,” he said.
Mr Narube explained that fiscal space meant having sufficient resources available to address national priorities and support citizens during difficult economic times.
“We need to create fiscal space, and to create fiscal space, I would go for expenses – cut expenses because you are in control of that.”
The former Reserve Bank of Fiji governor said Government should ensure spending is directed only toward essential needs.
“Make sure that whatever money that you are spending on, they’re essential, very needed expenses.”
Mr Narube accused both the current Coalition Government and the previous administration led by former finance minister Aiyaz Sayed-Khaiyum of wasting public funds.
“We have wasted a lot of money. In this government, and Sayed-Khaiyum’s government, we have wasted a lot of money.”
Referring to annual government expenditure of about $3billion, Mr Narube claimed substantial savings were possible.
“I have calculated that … we can save at least, to me, $1 billion a year.
“Use that $1 billion, recycle it to more essential expenses, and take care of the people at this very difficult time.”
‘We need to live within our means’
UNITY Fiji party leader Savenaca Narube has likened Fiji’s fiscal challenges to a household spending beyond its income, warning that excessive borrowing can eventually lead to serious financial consequences.
Speaking on The Fiji Times’ online portal The Lens@177, Mr Narube said the dangers of debt were easily understood when viewed through the lens of a family budget.
“Just look at your family, you have a set income, and you spend more than you earn, what are you going to do?” he said.
“You’re going to borrow, you’re going to go for higher purchase. But if you do more and more of that, your income doesn’t grow, you’ll hit the wall very quickly.”
Mr Narube said continued reliance on borrowing without corresponding growth in income would
eventually leave people unable to meet their obligations.
“Whatever you have purchased, they’ll take that back.
“Debtors will be at your door, the bailiffs will be there too. So that will create a lot of problems for you into the future.”
The former Reserve Bank of Fiji governor used the comparison to stress what he believes should be the guiding principle of financial management, both for households and governments.
“We need to live within our means and we need to spend wisely whatever income that we have.”
Hardship being politicised – Narube
UNITY Fiji party leader Savenaca Narube has accused politicians of “politicising” the hardships faced by ordinary Fijians and called on the Government to urgently implement measures to help families struggling with the rising cost of living.
Speaking on The Fiji Times’ online portal The Lens@177, Mr Narube said political leaders should be focusing on solutions rather than political point-scoring.
“I think we tend to be political in that particular position, and I see that’s happening a lot in government,” he said.
“They are politicising the lives of people.”
Mr Narube said the plight of ordinary citizens should be at the centre of government decision making, urging Prime Minister Sitiveni Rabuka and his Cabinet to prioritise assistance for struggling households.
“The people deserve better, so if anything, the Prime Minister should be concerned of helping the people.
“How you do it, you are the Prime Minister. You look at the instruments available to government to do that, either through the budget, through the policy, or through other measures, but please look at the people, they are suffering a lot.”
The former Reserve Bank of Fiji governor said signs of hardship were visible across the country.
“It’s unbelievable. I see it every day in the supermarket, in the marketplace, on the streets, beggars lining up to collect when there’s a traffic light, that’s a sign that things are really bad.”
Mr Narube warned that conditions could deteriorate further before improving.
“They (people) are struggling, and this is going to continue. It’s going to get worse before it gets better.”
He urged the Prime Minister to convene Cabinet and urgently develop a package of measures to
address the challenges facing ordinary Fijians.
