The nation is being treated to a fresh round of finger pointing this weekend as both sides of politics react to the warning by the Governor of the Reserve Bank that Fiji is in for a challenging year as the economy loses some of the momentum of the post-Covid recovery.
It was as certain as night follows day that the FijiFirst opposition would seize on Ariff Ali’s statement to accuse the government of mismanagement. That’s what oppositions do. Or what they are supposed to do – put the heat on the government of the day on behalf of the nation to improve its performance. Yet no sooner did FijiFirst do what we pay it to do than the Minister for Finance, Biman Prasad, went into attack mode about its own record in government, as if raking over the coals is going to do anything at all to protect Fiji from the storm clouds the Reserve Bank says are gathering.
We don’t need a Punch and Judy show between the Coalition and FijiFirst over the economy. We need to be certain that the country’s economic management is in the best of hands to weather the coming slowdown. And that is by no means certain when Biman Prasad seems more anxious to play politics than explain to the Fijian people precisely what he intends to do to minimise the negative impact of that slowdown on living standards.
What we’re seeing instead is a rerun of what has become a very tedious narrative – the old Charles Atlas “my economic muscles are bigger than yours” routine between Biman Prasad and Aiyaz Sayed Khaiyum that dominated the election lead-up and that Biman Prasad is continuing with Khaiyum’s surrogate – Faiyaz Koya. We all know that Koya is a ventriloquist’s dummy and that every word uttered by him on the economy comes from Aiyaz. Which is why this latest war of words is so pointless and depressing for anyone looking for genuine answers about the way forward.
The Fiji Times reinforces its role as Coalition lapdog in the same way that the Fiji Sun was FijiFirst’s lapdog with a front page today that gives Biman Prasad a free kick to try to swing the focus back on the previous government’s economic record. When he urges FijiFirst to play a more constructive role in opposition, what he really means is “try harder, Aiyaz, to see how brilliant I am compared with you at managing the economy”. When the truth is that neither of them are Charles Atlas and Biman Prasad is showing no more ability to get on top of Fiji’s multiple challenges than his predecessor.
The fact that Fiji’s national debt has actually increased under the Coalition from $9-billion to a projected $10.5-billion tells us that we are still continuing as a nation to live beyond our means. The Coalition owed it to us all to use the goodwill that accompanied its election victory to make the hard decisions – to warn that the debt binge could not continue and tighten the national belt with cuts in government spending. They needed to both preach austerity and lead by example with an austere approach to governing.
What has happened instead? Not a program of “back to basics” and cuts to everything but essentials like health, education and the police but the same orgy of spending as its predecessor. It took almost a year for the Prime Minister to reduce the $3000 plus a day overseas travel allowance of his predecessor. And the nation has been shocked at the amount of time Coalition ministers have spent gadding around the world while conditions at home show no sign of improvement, whether it is the appalling conditions in our hospitals or the self-indulgent antics in the education ministry.
As Grubsheet quoted a PAP supporter in our last post, the Coalition is good at boasting about how much better it is than FijiFirst but is chronically unable to deliver – to implement its policies. And its year in government has been marked less by solid achievement than a series of damaging distractions of which the Lynda Tabuya-Aseri Radrodro sex and drug scandal is just the latest.
There is an old truism in politics that governments that can’t govern themselves have no hope of being able to govern a country. And close to 14 months into its term, the Coalition partners are still fighting over the spoils of office, still obsessed with internecine warfare and their own interests rather than the national interest. SODELPA is still insisting that it be given plum jobs it says were a precondition for joining for the government. And not a week goes by without the media reporting Coalition tensions or leadership speculation. It is a government of navel gazers, not of men and women of vision and resolute action.
Soon after it took office, the Coalition’s lapdog, the Fiji Times, trumpeted the return of the Tebbutt opinion poll and gave lavish coverage to the Coalition’s popularity with the public. What has happened to the Tebbutt poll? We certainly haven’t seen it recently. Which almost certainly means that the government’s stocks have gone into free-fall and the Fiji Times can’t bring itself to face the fact. (Prove me wrong, Fred.)
This government’s obsession with spin is no different to the last, which undoubtedly accounts for the way in which the Reserve Bank Governor’s comments on a slowing economy burst like a thunderclap at the end of last week. It came out of left field with no warning at all from him or anyone else. And certainly not from Biman Prasad, who is no different from Aiyaz Sayed-Khaiyum in giving grim reality a rosy spin. Where were the warnings from the Finance Minister that 2024 was going to be “challenging”? There weren’t any. Which is why Ariff Ali’s statement has been greeted with such surprise, even shock.
Once again, Biman Prasad has sunk to the occasion when he could have risen to it. Instead of patiently explaining how the government plans to deal with any correction and what it will all mean for the average Fijian, he dodges the opportunity to show real leadership and with the assistance of his media lapdog, makes it all about the opposition. A history lesson from the Professor and gratuitous advice to be more positive. Er, Biman, you have been in charge of the economy for the past 13 months. So the buck stops with you, not them.
The NFP leader has been a big disappointment across the board – missing in action during the “vulagi” debate in which the right of non-indigenous Fijians to belong was being fundamentally questioned; missing in action as the workplace ethnic cleansing in the civil service and offices of state continues apace; missing in action during the outrageous assault on the rule of law in which the Fiji Law Society alone has had to fight the illegal appointments of the Acting DPP and a Supreme Court judge; and now a blame game about the state of the economy.
What good is the NFP if they won’t keep the other bastards honest? That’s the burning question a great many NFP supporters have been asking themselves and the answer for most is “no bloody good at all”. Which is why the oldest political party in Fiji is going to be decimated whenever the next election is held and the Professor propelled from politics altogether, giving us lectures to the last breath but dodging what really matters to those who put him there.
Biman is so obsessed with ASK that he cant see the fly sitting on his nose. He used go around to communities talking to people and begging for votes. The very people who put him in government have been forgotten.
Common Fijian gets 15% vat while Fiji water gets a tax holiday. We are yet to see the redistribution of the extra money government earned by increasing vat. Unfortunately that money is being used to pay travel allowances for ministers and even for some to have brutal sex while overseas.
The common person in Fiji is so broke that even ceratin food items have become a luxury for them. Just step into a supermarket and observe the shopping carts of people Mr Minister of Economy.
Fiji was bit of a ruin after the last government but by the end of this 4 years it will have lost its best people as well.
Since Biman cant see the fly sitting on his face, PM should just take a swipe and get it off. Remove this incompetent minister and put someone who can find real solutions to the economic difficulties of our people.
They got together and created a think tank called the FISCAL REVIEW COMMITTEE headed by DICK NAIDU.
We’re all puzzled by the creation of this
body because this committee is just replicating the work that ought to be done by BIMAN and his ministry. It just shows what a charlatan BIMAN is.
You’d think that a gathering of great minds will at least reduce our debt, the same debt trap conspiracy that the coalition campaigned is the bane of our existence, instead they’ve piled on another billion.
That too when we’re not burdened by any hurricane or pandemic or any government capital development project to justify the extra billion.
I wouldn’t mind Biman pilling that billion dollars on me .
Yes the debt is projected to increase to $10.5 billion , what you fail to mention is that the rate of debt increase has started to decrease under the Coalitions 1st budget.
Deficits under FFP was always hovering around $1-2 billion each fiscal year, thus the need to heavily borrow to finance the deficit.
The Coalitions budget has a projected deficit of $400 million, so you can see that the rate of increase has decreased and as the Finance Minister has already stated it will take about 10 years to bring the debt ratio to around 50%, so they do have a plan on debt management.
Faiyaz Koya is an idiot who knows nothing about how to run an economy, remember all the $1,000 handouts he was giving was like printing money , I wonder how many of those handouts resulted in a strong and thriving business. He rolled out the money to buy votes.
Fiji’s economy is where it’s today due to bad fiscal management under Khaiyumnomics which should never ever be repeated as it was based on borrow and spend.
You are another NFP supporter who is a nitwit. FijiFirst Government was paying its debts and not refinancing it like Biman is doing. He needs 100 co-pilots to fly the plane from Fiji to NZ. That is the mentality he has.
In 16 years FFP debt was well managed. After 2019 the debt increases just because Covid 19 creates a stagnant Economy. Not only Fiji but other Countries have borrowed trillions of dollars. Go and read some news. Fiji would have had less debt had Covid 19 not forces FFP to borrow money to keep the countries economy floating.
Biman talks about education, health and infrastructure. Yes, health centers and CWM and other hospitals were in a mess but education sector did well in the last 16 years. More and more women graduated and have a healthy salary/wage jobs. Infrastructure had improved under FFP, pictures don’t lie and one can travel with ease due to road improvements by FFP.
What did Biman do? Suspended FRA contractors for 4months and the roads have become a mess. He speaks about poor road and wastage, when FRA are still tarsealing roads, that crumble in heavy rain. Isn’t this a waste of tax payers money?
Khayiumnomics is still far better than so called text book professor. One can become a professor just by reading books and giving exams. It takes experience out in the field to know things. When Biman talks it feels like he has nothing constructive to say.
Fiji First brought MSME’s to the forefront. Their goodwork is still being carried by Biman and his pack because he lacks ideas. NFP was against a bill being passed by Khayium when medicinal cannabis was brought about by FFP. Now, they same lot are advocating it. The 200 dollar back to school initiative was FFP’s. In 2022 budget it was passed that 150 will be given and then if FFP won in 2023 another $150 would be given to parents for their children’s back to school shopping. Coalition comes into power in December 2022 and Biman brags about giving $200 in Janaury 2023. What did he really do? Just added additional $50 to look good on papers.
The debt is rising and by 2026 it will be around 14billion. In 4years this Government will create a history of having 4billion in debts. Also, cross your fingers when a Winston like Cyclone wrecks havoc on Fiji. God forbid but when it does. Let’s wait and watch how Biman borrows money. Grants and cyclone appeal won’t be enough.
Come back in 2026 when the debt is high. We can have a chat and you will be proven wrong. Biman will go down as the worst finance minister of Fiji and be known you are a hypocrite like many others this country. When it benefits you, you jump like a Kangaroo and when it doesn’t you change your tune.
Khaiyumnomics was so good that he had to sell EFL shares to the time of $400 million to help finance the budget deficit.
Khaiyumnomics was so good that tax threshold was raised to $30,000 VAT reduced to 9 % and expenditure was increased. So decrease revenue and increase expenditure and make the economy a consumption driven economy and rely on trickle down economics. This is precisely the reason why the debt is at record high.
Get a reality check my friend. You would never run your business that way? Would you?
Bro, the debt was 4.3billion in 2018/19. That is also before Covid-19 and 14 years of Interim and FFP power after 2014 election. It Balloned after Covid 19. If Aiyaz did not reduce VAT, people would have been declared bankrupt.
Covid – 19 made the Government at that time to borrow money. So, get your facts right. They had 4.3billion in debt from 2007-2019. Leave 2006 as the coup happened during Qarases reign. If they did not borrow money Fiji would have collapsed. Don’t forget Winston. After Winston the debt was still at 4.3billion.
We will see in 2026 what is the debt level at bro. Already 1billion in one year.
Well said Pita. Couldn’t agree more. This is the worst Fiji government ever. An absolute embarrasment. FFP government was not prefect but nothing in life ever is. It’s always an 80:20 rule…FFP govt was 80% good…there was real, tangible progress happening. These coalition jokers are the other way around. In fact they don’t even make the 20% cut. And Baimaan is the worst of the lot.
The entire FNPF facebook page is littered with the Professor’s response to My Koyas statement. Just petty bickering and finger pointing rather than any genuine attempt at putting his own plan forward.
This party is full of idiots and even more dumb people run its Facebook page.
I just lose hope with these gang in government.
Thanks for being fair and also sharing the Fiji Times article with your commentary. Balancing everything, I feel Biman Prasad is right and you are wrong this time. Let’s face it, 13 months is not a long time and fixing 16 years of mismanagement will not be an easy task. Anyone expecting things to happen with a wave of a wand is simply not being realistic. You are right however, that government needs to discard populistic policies and take some hard decisions. The economy is not yet on track although a lot implemented in the last year has been in the right direction… it just has not gone far enough. Above all, the principle should always be to grow the economy sustainably and in step with wealth distribution among those most in need.
“The Coalition is good at boasting about how much better it is than FijiFirst but is chronically unable to deliver – to implement its policies” HARD FACT!!
A fair tax on Water bottling companies will go a long way to fix economy. Simple maths can help: 25% tax of 1 billion dollar company = $250m
25% tax of small Fiji business = $2500
Cost of good idea for government = $0
Cost of 7 year tax holiday for Fiji = $1750,000,000 or $1.75 billion
Something doesn’t add up
A few thoughts on the tit for tat on the current Fiji financial position.
The figures below are taken directly from the budget papers issued when the Government brought down its 2023-24 Budget.
ESTIMATED REVENUE: $(000) $(000)
Direct Taxes 816,438.2
Indirect Taxes 2,291,221.3
Others 586,384.7
Total Operating Receipts 3,694,044.3
Total Investing Receipts 6,680.3
TOTAL ESTIMATED REVENUE 3,700,724.6
ESTIMATED EXPENDITURE: $(000) $(000)
Operating 3,036,866.1
Capital 1,192,121.1
Value Added Tax 110,883.7
TOTAL ESTIMATED EXPENDITURE 4,339,870.9
Estimated Net Deficit 639,146.3
Debt Repayments 516,230.3
Gross Deficit 1,155,376.6
A couple of other points to think about:
The Government’s total operating expenditure projection has increased (compared to the previous year) by some $437.656 Million. This despite advice from Institutions like the World Bank, IMF and ADB as well as the likes of Savenaca Narube the former Governor of the Reserve Bank of Fiji and Permanent Secretary in the Ministry of Finance who also advocated reduction in Government expenditure.
If you going to fix infrastructure, then you need to increase your capital expenditure. The budget for 2023-24 has an estimate of $1,192,121.1, which is only $31.558 million on the previous year estimate, hardly an injection of cash given inflation.
The Government has shown little in the way of financial discipline with all members being either a Minister or Assistant Minister, which will see the cost of Government increase – cars, phones, offices, staff, travel, allowances and with it the operating costs of Ministries. Not forgetting the costs of removing existing office holders and appointing others and the costs associated with appointments to positions on Boards and diplomatic missions.
The promised reduction in the PM Overseas allowance took nearly a year! But the level of travel by him and his Ministers seems to know no bounds.
Excellent input, “Fiji Watcher”. We have also been paying for two police commissioners and two DPPs and for a time, two Chief Justices until the suspended one died. And the Coalition continues to defy the Constitutional requirement for tribunals to be convened to bring this farce to an end.
I am gobsmacked that the NFP has allowed this outrage to occur. They could and should have said to Sitiveni Rabuka. “Get your Attorney General and the Acting Chief Justice into line and start obeying the supreme law or else”. Terminally useless.
The only thing NFP and Biman are in the government for is to make as much money as possible themselves and to give their party donors high positions.
Also to be PM’s lap dog.
Make no mistake, there have been two impactful calls by Coalition that were unwise these are
1) Forgive 1bn of loans at cost to taxpayer and not thinking about those who did pay back or to tax payers.
2) Tax holiday for major American company.
Both calls were made almost immediately and cost Fiji economy and tax payers big time
There should be an immediate independent and expert review for Fiji economy that makes sure experts from overseas are called in to stop these mistakes as too many fingers in the pie in Fiji.