Political parties focusing on government debt

Government debt and net deficits are now topics of discussion in the FijiFirst and Social Democratic Liberal Party campaign meetings over the past few days.

Former Prime Minster Laisenia Qarase who is now actively campaigning for SODELPA in a number of meetings claims that current government debt has nearly doubled compared to when he was in government in 2006.

Qarase highlighted that the government debts during his government in 2006 was $2.6 billion compared to the current government now which is almost $5 billion.

Meanwhile, FijiFirst Leader Voreqe Bainimarama said during the 7 year period between 2000 and 2006 which was predominantly led by Qarase, the governent had an average net deficit of 4.3 percent of GDP. The largest deficit was 6.2 percent in 2001.

The FijiFirst said in contrast, during the comparable 7 year period from 2007 to 2013, the Bainimarama led government was more prudent and disciplined with its spending with a much lower average net deficit of 1.7 percent of GDP.

Net deficit means a country’s stock of outstanding debt rises when its government spending is more than the money it receives.

The FijiFirst also said that it is important to note that the Qarase led government borrowed money for operating expenditure such as wages, salaries and everyday expenses unlike the Bainimarama led government that has borrowed funds for capital expenditure, building assets like roads, bridges, hospitals, jettys, rural electrification and schools.

Qarase is now denying that the government he led was only borrowing funds for operating expenditure.