The Fijian government is preparing for a potential global economic slowdown by considering a larger budget, according to Deputy Prime Minister and Finance Minister Professor Biman Prasad. He emphasized the importance of maintaining fiscal discipline while ensuring that funds are allocated to programs that stimulate growth and protect crucial services during challenging times.
In his statements, Prasad assured that despite the proposed increase in budget allocations, the debt-to-GDP ratio will be kept below 80 percent. He articulated the government’s commitment to strategic investments in key sectors such as education, health, and infrastructure. This focus on critical sectors is designed to bolster long-term growth and enhance economic resilience.
Professor Prasad stressed the need for proactive government actions in light of global economic trends that could impact Fiji. He noted the country’s responsibility to adapt its expenditure accordingly to address both immediate challenges and future needs. This aligns with earlier communications where he highlighted a projected economic growth rate of approximately 4% for 2024, indicating positive domestic economic prospects despite external pressures.
The government’s approach includes engaging with communities to ensure that budgetary decisions reflect the needs of citizens, showcasing a commitment to inclusive governance. Previous initiatives to remove VAT on essential items and adjust import duties have already provided some relief from increasing living costs, underlining the government’s responsive strategy to economic pressures.
Overall, the government’s budget strategy reflects a blend of caution and optimism, as it aims to support citizens while enhancing Fiji’s economic stability and growth potential amid global uncertainties. By fostering a collaborative environment between government and the private sector, Fiji is working toward a resilient economy that prioritizes the welfare of all its people.
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