Was that a fact or conjecture? Don’t matter, as far as IG is concerned, both are based on a faulty premise!

Fiji govt records $77 million surplus

The Fiji Government recorded a net surplus of $77.4 million for the 12 months to June this year, the Reserve Bank of Fiji says. However, Australia-based economist Professor Paresh Narayan told Fijilive the surplus was only a “mathematical outcome” if it was achieved on the back of declining capital expenditure.

The RBF said this figure represented 1.3 per cent of the gross domestic product and was underpinned by a decline in operating expenditure and higher revenue collections. It said Government’s capital expenditure for the first six months of the year was higher by 5.4 per cent on an annual basis.

Narayan highlighted Narube’s comment at the recent mini-economic summit where he revealed that of the $162 million allocated for 2008, as of August only $15 million had been spent.  He said if only $15 million out of the $162 million was spent until August, “then it seems to me that a significant proportion of capital expenditure has been sacrificed”.  
“In fact, even if it was tightening of operating expenditure, this should have been diverted to capital expenditures, such as infrastructure,” Narayan told Fijilive. He said this net surplus was meaningless in an economy as badly directed by policy makers, where economic growth had been negative and forecasts for similar weak performance. 

 

“In other words, what is the point of obtaining a surplus when the economy is lagging behind on all fronts: weak negative growth, escalating inflation, increasing debt levels, weak export performance relative to imports, leading to a current account deficit, and weak investment levels?”  

“Capital expenditure is an important aspect of Fiji’s reconstruction. Fiji needs more capital expenditure allocations in key sectors such as roads, energy, water, and housing, among other things,” Narayan said.   

He said it was good to cut down on operational expenditures as returns were relatively low compared to capital expenditures. 

 

“Capital projects, related to both the social and economic sectors, have been neglected for over two decades now and are in need of urgent attention. For this to happen, Government will need to generate additional revenues,” Narayan said.

 

Former interim Finance Minister Mahendra Chaudhry and Permanent Secretary Peceli Vocea could not be reached for a comment. 

Fijilive 6 Oct 08

15 Responses to “Was that a fact or conjecture? Don’t matter, as far as IG is concerned, both are based on a faulty premise!”

  1. Mark Manning Says:

    Any idiot can reduce the public service to save on wages , but this in turn reduces taxes which again reduces services . When you realise that Government is only there to provide a service , then you have to wonder why it’s there at all if it can’t provide those services . Surprisingly , they can still afford to pay consultants yet not purchase basic hospital and education supplies etc.
    Managing an economy is a far different thing to what the IG is doing .
    My understanding is the economy in Fiji retracted 7.3 % in 2007 ! And that it has a deficit already of $1,200,000,000 ( 1.2 billion ) .

  2. Mark Manning Says:

    Don’t forget , the $1,000,000,000 Qarase had in the pipeline for developments , has come to a stand still since the idiots took control of Fiji’s destiny .

  3. Striker Says:

    With inflation at 9%, high cost of living, when parents can’t pay school fees, buy lunches for their children, when more fall below the poverty line etc, what fool can boast of a govt. surphlus?

  4. IslandBoy Says:

    Relax guys, as you can read elsewhere this is all a justification for boostinng John Samy’s monthly pay to FJ$30,000 for preparing the budget for Frankie. After all he has loads of experience from his ADB MinFin and Planning Office days. (Ref: Raw Fiji News)

  5. ex Fiji Tourist Says:

    Fiji under the jaundiced junta;

    * Hospitals without medicines, machines and staff

    * Schools closed because they are a health hazard

    * Roads and bridges in terrible states

    * Diseases rampant throughout the country

    Yet:

    the illegal pretend minister of health runs around the country supporting the military charter and slimy sami gets a pay rise.

    Talk about a third world junta.

  6. Cama Says:

    They will milk the economy before they run away, everyone becareful now. Figures shown by the Reserve Bank are just to justify Sami’s wage increase and the people that are promoting the charter.

    they will be no pay increase for civil servants because of the people in NCBBF should be paid for the extension period of the charter and hefty allowance civil servants are enticed with to promote the charter.

    Circular being circulated to civil servants for a compulsory march on Fiji Day and transport will be provided. this is show the world that we support the Interim AG because of the presence of the press on Fiji Day so that the world will know by the numbers present. Is this democracy?

  7. coffee bean Says:

    Oo-lala, who wants to go and heil hitler in the hot sun at Albert Park! People, you are due for that sick leave on Friday, eh?

  8. Wailei Says:

    lol@CB. nice one on “That sick leave on Friday”. I certainly am going to wear black on Friday and do a “Wake” in a certain Fiji Embassy this Friday. After all a Wake, traditionally takes place in the house of the deceased. So, Shall send photos to SV…… Stay tuned.

  9. Billy Says:

    To all civil servants, this is the best time to show your disgust with what is happening, it is your public holiday, Stay home, no one should be dobbed their pay just cause they dont turn up to Albert Park. Don’t be like sheep being led to the slaughter. Stand up for your children! Stand up for Fiji. Show the world that we do not support what is happening. Others in private sector have stopped paying their taxes to an illegal regime, that is their silent protest.

  10. Wailei Says:

    Rumor FLASH:

    Heard that Franky is going to Abrogate the Constitution this Friday (10th October, 2008). Maybe a good reason not to go to work nor celebrate Fiji Day?

  11. Nasi Lomani Says:

    @ Wailei…say trues up? aah nai sake! Doomsday is nigh!

  12. Billy Says:

    Please everyone just pass the word around, STAY HOME!!! DON’T BE CAUGHT UP IN THIS FOOLISH LYING THIEVING CONNIVING GROUP OF ILLEGALS spinning more web of LIES on Fiji D-Day!. Our nation deserves better. Silent protest…Me i cavai! Let him force his way around, violence will never pay, and lying will catch up. Have no fear, respect only the law not illegals.

  13. ex Fiji Tourist Says:

    Cama Says:

    Circular being circulated to civil servants for a compulsory march on Fiji Day and transport will be provided.

    Cama, do you have a copy of this circular?

    It would be great if you could send it to SV so that the world can see the ‘rent-a-crowd’ mentality of the inept jaundiced junta.

  14. Katalina Balawanilotu Says:

    Don’t go to work and join Tui and family instead? Sounds like a plan.

  15. Katalina Balawanilotu Says:

    Yeah that is true. I spoke to Tui. He is legit. He is deeply disappointed in fact he sounds very hurt .. mai loma, mai loma sara ga. Well, you know hat they say it is the heart that moves mountains.

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