Brace For It
DRASTIC MEASURES COULD RESULT FROM FINDINGS OF REVIEW COMMITTEE
Chairman of the Government-appointment fiscal review committee 2023, Richard Naidu, says there is bound to be some pain in options they will recommend to the Finance minister, when it tables a report in May. It follows the Deputy Prime Minister and Minister for Finance, Biman Prasad’s announcement of the 14-member committee.
With a composition of six women, and a representation ofa cross section of industries, the committee will examine the overall setting of the Government’s fiscal policy, and make recommendations on how the Government can rebalance its revenue and spending, find avenues for economic growth and ensure that Government can fiscally sustain itself over the next decade.
The committee will carry out public consultations across major urban centres around the country, and invite submissions from economic stakeholders and the public.
Mr Naidu said the last committee formed was in 2004.
After a lapse of almost 20 years, the newly-formed committee is expected to provide a fresh look at the Government’s policy on how it raised taxes, spent money, and how things changed.
“The Minister of Finance was very clear and worried about the debt,” Mr Naidu said.
“We have a debt to gross domestic product ratio of about 85 per cent.
“What that means is, we are well above the safe limit in which we
The Minister for Finance was very clear and worried about the debt.
are regarded as a country of our income level and size.
“Our government debt is so high. “We are reaching a point where financial markets may be reluctant to lend to us, even if we still have the support of institutions like Asian Development Bank, and World Bank.
“We really have to get our house in order, and that’s very challenging.
“We have to make some very hard choices.”