'Stop funding commissions, redirect money to people'

Former Minister for Economy Aiyaz Sayed-Khaiyum says Government should redirect funding from the Reconciliation Commission and other ongoing bodies towards targeted assistance for struggling Fijians and economic priorities.

Speaking during a panel discussion at the Dialogue Fiji State of the Economy Dialogue, Mr Sayed-Khaiyum said Government resources were being spent on initiatives that should no longer be a priority given current economic challenges.

"We have been spending so much money, time, and energy on things like Reconciliation Commission, the Constitutional Review Commission, elections are supposed to be held by February," he said.

"Why are we still funding these people?"

Mr Sayed-Khaiyum questioned whether public funds could be better used elsewhere.

"Why can't we use that money for something a lot more appropriate, a lot more decisive, a lot more targeted?"

He said Government should focus on targeted assistance programmes for vulnerable households and marginalised communities.

"At the moment, I think government needs to, from a social equity perspective, because we need equity, amongst in particular, the marginalized in our country, that will provide some level of stimulus."

Mr Sayed-Khaiyum also revisited the idea of a national identification card system, arguing it would allow Government to better target social assistance.

"If we had a national ID card in place by now, government could have targeted, provided targeted assistance."

He said Fiji's economic challenges required policymakers to focus on practical measures that directly benefited households and businesses.

Cut operating expenses

Mr Sayed-Khaiyum said Government must dramatically cut operating expenditure as rising wage costs and a growing civil service are limiting its ability to stimulate economic growth.

Speaking during a panel discussion at the Dialogue Fiji State of the Economy Dialogue, Mr Sayed-Khaiyum said Fiji's limited fiscal space was partly the result of insufficient investment in productive sectors.

"There is limited fiscal space now. Because the lack of expenditure on the capital sector has meant it's not even stimulus," he said.

"We are developing country. We need to spend money on development that will provide or increase productive capacity. And that has not happened."

Mr Sayed-Khaiyum said the size of the civil service had increased from about 34,000 employees in 2022 to around 38,000 today.

"Our budget spent on paying civil service wages was about $1 billion. Today, it sits at $1.3 billion."

He said when staff numbers from the Fiji Roads Authority, Water Authority of Fiji and Fiji Revenue and Customs Service were included, the total reached about 42,000 people on Government payrolls.

"So, you see, all of this actually creates a situation where there's very little room for the government to maneuver itself. And that is a problem that we need to address."

Mr Sayed-Khaiyum said difficult decisions were now required.

"I think what we need to do is, as we sit, cut back expenditure dramatically, operating expenditure, dramatically."

"It may burn a few people. We need to do that."

He said assistance should first be directed to vulnerable households.

"But prior to that, we need to provide targeted assistance to ordinary, marginalized Fijians."