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We’ll be $100m in debt by 2014 says minister

Wednesday 1 April 2009 | Published in National

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Tuesday 31: National debt seems bound to grow.

In meeting with the Democratic Party executive in Aitutaki last week, minister Wilkie Rasmussen revealed that government has been told that by 2014 the country will be in over $100 million in debt – in part due to the new $50 million soft loan from China.

Rasmussen told the party’s Aitutaki executive that some government members do not agree with taking the soft loan.

“That’s $2.5 million a year for the next 20 years to repay,” he said, adding, “By 2014 there will be a deficit of over $100 million.”

Rasmussen said this will be because there is not enough revenue coming to government but spending always increases, he said.

The minister said the debt incurred from adding the $50 million loan to this would be a burden on the people. - HG