Fiji financial year adjustment makes no sense to opposition
Fiji's shadow finance minister says the government's decision to change the financial year is an unnecessary move that makes no sense.
Transcript
Fiji's shadow finance minister says the government's decision to change the financial year is an unnecessary move that makes no sense.
The finance minister, Aiyaz Sayed-Khaiyum, yesterday announced that the financial reporting year, which currently mirrors the calendar year, will move to August to July.
Mr Sayed-Khaiyum says this is to avoid the cyclone season, and to move a critical planning and reporting month away from the festive season, in line with several other countries, including New Zealand.
But the National Federation Party's Biman Prasad told Jamie Tahana that it's an unnecessary intervention considering the challenges facing the country after cyclone Winston.
BIMAN PRASAD: The reasons given by the Minister of Finance to suddenly change the financial year makes no sense. I mean, you know, he talks about the fact that the civil service would not be ready to implement the budget in January if it's submitted in November, then he talks about revenue coming in on the 31st of December. I mean, those reasons don't make a lot of sense, I think what is needed right now is a thorough look at the 2016 budget and how we can reprioritise and reallocate expenditure in the 2016 budget. So that's the reason why we think the timing and the need for such reconsideration of the financial year makes no sense.
JAMIE TAHANA: Well you say it makes no sense but in the Fiji media this morning we have the president of the accountants' institute, or Jenny Seeto a senior partner at PriceWaterhouse Coopers saying they are pragmatic moves and, you know, readjusting the financial year does make sense because when you've got the government's money coming in this gives time for a proper budget to be planned.
BP: Well I mean, you know, again that doesn't sound convincing. I mean, basically Jenny Seto and others are parroting the government's view and right now what we have in this country is everybody either keeps quiet or ends up supporting any move like what has been supported by the attorney general so I really don't give a lot of credence to what they are saying. I think the real issue is that it is an unnecessary intervention right now, the focus should be to reallocate the budget and what the government should do is bring in to parliament a revised 2016 budget. I mean, what is this nonsense about changing the financial year in the midst of a very serious crisis?
JT: OK so it might be bad timing now, you suggest, but in future, say in a couple of years would it make sense?
BP: Well I don't think, I mean so far I haven't been convinced with any of the reasons given by the government as to why they want to change the financial year. The only thing they are talking about is that all the civil servants are not going to be ready -- the civil servants are going to be in a holiday mood -- what nonsense. I mean, you know, government has the right to realign and prioritise and if civil servants are required to work late before christmas to sort out the budget, and these things don't happen in just a month. I mean, when the government starts preparing for a budget to be presented in November, there's obviously a lot of work that has to be done before that. So I don't see the logic of saying 'oh because you know everybody's in Christmas mood and holiday mood we need to change the financial year.'
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