SUVA (Pacnews) — As widely speculated, Fiji’s revised budget demands tough and prudent fiscal management for the island nation that’s predicted to be on the brink of economic collapse.
“We have reached an extremely critical situation, where at this juncture we have to either swim or sink. I intend to swim and make sacrifices for our well being. If we are to continue on the current path, then it will spell doom for Fiji,” said Mahendra Chaudhry, the interim finance minister.
Chaudhry handed down the interim government’s revised budget at the Suva Holiday Inn.
He said while the budget will be a “bitter pill” for the people of Fiji, “there are no other choices.”
Chaudhry blamed Fiji’s financial woes to irresponsible borrowings, mismanagement and other inefficiencies of the Laisenia Qarase government.
“They were living on a champagne lifestyle but on a beer budget,” the former prime minister said.
Chaudhry said adjustments costs for taking the country to financial and economic stability would be borne by all the people.
He announced three measures the interim administration hopes to turn the country around.
These are stabilizing governments finances, redirection of resources to productive areas and responsible financial management.
One of the measures to reducing government expenditures is the five percent pay cut for across the board for all civil servants. However, he said the wage cut will not be permanent.
“This will be reviewed once government finances have stabilized. We simply cannot afford to pay civil servants. Civil service pay accounts for just over 40 percent of government’s total expenditure.
Chaudhry appealed to the trade unions to understand the interim government’s position.