$750 million will be directly distributed to people in the next financial year to help offset the rising cost of living.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, highlighted that the zero VAT on 22 listed items means the $250 million that the Government could collect in taxes will instead remain with the citizens.
Prasad detailed additional financial support measures, including $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.
“These initiatives are complemented by the free health scheme, kidney dialysis, and support for first home buyers,” he said.
“The additional $100 million in revenue that we are collecting is all going towards supporting our people as they continue to transition to higher incomes and better jobs in the post-COVID era. We recognize our responsibility as a government,” he added.
Prasad noted that the Government has revised Fiji’s growth rate from 3.4 percent to 3.8 percent, with some commentators suggesting it may be even higher by year-end.
He emphasized that the Coalition Government is providing realistic growth forecasts and not exaggerating as was previously done by the FijiFirst Government. They are not claiming overly optimistic growth rates of 3.5 or 3.6 percent, especially given the economic challenges from the slowdown in Australia and New Zealand and labor shortages.
“We have revised our growth forecast downwards, but the economy is still growing. It is not contracting as misunderstood by the Opposition. With the fiscal stimulus and economic optimism in the budget, there is a likelihood that this growth will be revised upwards,” Prasad said.