Taito Waradi, Minister of Commerce, speaks on the Fiji economy

The two per cent budget deficit might be too ambitious and could be counter productive when viewed against medium to long-term development objectives, says Interim Commerce Minister Taito Waradi.
Mr Waradi said stretching the deficit beyond the proposed two per cent should be taken into consideration for it to better serve national interest.
He said the 2007 Budget should be pro-growth.
His comments came after University of South Pacific economist Doctor Mahendra Reddy said the interim administration should not be in a haste to reduce the deficit given Fiji's poverty, the pathetic state of infrastructure and declining health resources.
Dr Reddy said while cutting wastage and misuse of public sector resources was needed, given the economic depression "it is commonsense that the Interim Government takes the lead role in raising aggregate demand".
"The last thing we want to do is to dampen demand at a time when the economy is projected to contract to negative 2.5 per cent growth from the original positive two per cent for this year," said Mr Waradi.


the rest of the article from Fiji Times