CHAPTER 5: GOVERNMENT’S BALANCE SHEET Introduction 5.1
This chapter presents the key components of Government‟s Balance Sheet, covering assets and liabilities. Government is committed to effectively monitor its investments to ensure maximum returns from these entities. Similarly, prudent management of liabilities, including both domestic & foreign debt and contingent liabilities has been a key objective of Government. This is to ensure lowest possible long term cost, consistent with an acceptable degree of risk. Government Equity Investment
5.2
Reforms have been ongoing in State Owned Entities (SOEs) to improve productivity, enhance service delivery and ensure efficient and effective use of resources. This will enable SOEs to generate positive returns.
Figure 5.1: Equity Investments in SOE's
MAC 28%
CSA 16%
5.3
Government has equity investments MIC in 25 SOEs. Of Government‟s 16% GCC investment portfolio, 40 percent is 40% invested in Government Owned Companies (GCC), 28 percent in (Source: Ministry of Finance) Government Majority Owned Companies (MAC), 16 percent in Government Minority Owned Companies (MIC) and 16 percent in Commercial Statutory Authorities (CSAs).
5.4
Investments in the agriculture, transport & infrastructure sectors accounts for 60 percent of the total portfolio. The communication sector and finance & trade sector accounts for 28 percent, whilst the fisheries & forests sector accounts for the remaining 12 percent.
Figure 5.2: Equity Investment Portfolio
28%
20%
8%
5.5
Table 5.1 lists the SOEs with Government shareholding. It excludes current reorganised entities such as Biosecurity Authority of Fiji (BAF), Maritime and Safety 53
32% (Source: Ministry of Finance)
12%