A total of $750 million will be directed into people’s pockets in the next financial year, aiding in alleviating the increased cost of living. Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, emphasized that through the zero VAT on 22 listed items, the $250 million that the Government could collect in taxes will instead benefit the public.
Additionally, Prasad outlined various allocations: $40 million for Back-to-School Support, $78 million for Social Pensions, $44 million for Family Assistance, $17 million for Disability Allowance, $17 million for Child Protection Allowance, $10 million for Electricity Subsidy, $10 million for Water Subsidy, $10 million for Transport Subsidy, and $150 million for Scholarships.
Other measures include the free health scheme, kidney dialysis, and assistance for first home buyers, which are supplementary to the existing benefits. Prasad stated that the additional $100 million in revenue being collected will be used to support the public, recognizing that post-COVID, many are still transitioning to higher incomes and better jobs, thus reflecting the Government’s responsibility.
The Government has revised Fiji’s growth rate from 3.4 percent to 3.8 percent, with some commentators suggesting this could be higher by the year’s end. Prasad rejected claims that the figures are manipulated, as was done by the previous FijiFirst Government.
He clarified that the Coalition Government is not overstating growth estimates, acknowledging challenges from the economic slowdown in Australia and New Zealand and labor issues. Despite revising growth forecasts downward, Prasad noted the economy is still growing and not contracting, as misunderstood by the Opposition. He added that the fiscal stimulus and economic optimism from the budget might lead to an upward revision of this growth.