Fiji's interim finance minister unveiled a new budget today, saying civil servants should be grateful they're only facing a small pay cut.
Mahendra Chaudhry presented a 900 million US dollar budget, which aims to curb public expenditure and boost capital expenditure.
Mr Chaudhry's budget focussed on stabilising the government's finances and initiating measures to curb operating expenditure, particularly in relation to its wage and salary bill.
It included slashing civil servants pay by 5 percent - a move he described as soft.
"Civil servants should be grateful they're only taking a pay cut of 5 percent. In 1987 in the first coup a cut of 15 per cent was imposed on civil service salaries, in 2000 coup a cut of 12.5% was imposed on civil servants, so I think we are being kind and soft to them this time."
It's also been confirmed that Value Added Tax will be maintained at 12.5 per cent.
Mr Chaudhry said one of the interim government's challenges was to reverse the widening trade deficit and stabilise the country's foreign reserves position.
The interim administration had identified key sectors to drive growth in exports, including forestry, agro-business, marine products, audio visual, information and communication technology, and mineral water.
Mr Chaudhry said reforms in the sugar industry would be vigorously pursued to lift sugar cane production from 3 to 4 million tonnes in the next three years.
