Get The Truth – Government Debt
A country’s stock of outstanding debt rises when its Government’s spending is more than the money it receives (net deficit). The shortfall in money or net deficit is financed by borrowing either in the domestic market, borrowing from overseas, or both.
During the 7-year period between 2000 and 2006 which was predominantly led by PM Qarase, the Government had an average net deficit of 4.3% of GDP. The largest deficit was 6.2% in 2001.
In contrast, during the comparable 7-year period from 2007-2013 the Bainimarama Government was more prudent/careful and disciplined with its expenditure/spending with a much lower average net deficit of 1.7% of GDP.
In addition, it is important to note that the Qarase led Government borrowed money for operating expenditures such as wages, salaries and everyday expenses unlike the Bainimarama Government that has borrowed funds for capital expenditure/building assets like roads, bridges, hospitals, jettys, rural electrification and schools.