$750 million will go directly into people’s pockets 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 through the zero VAT on 22 listed items, the $250 million that the Government could collect in taxes is being returned to the people.
He detailed that an additional $40 million will be allocated 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 in Scholarships.
“The other initiatives include the free health scheme, kidney dialysis, and support for first-time homebuyers. Combined, these benefits go beyond what people are currently receiving.”
“We are allocating the additional $100 million in revenue to support our citizens because we recognize that people are still transitioning to better income and jobs post-COVID. It is the Government’s responsibility, and we are acting responsibly.”
The government has revised Fiji’s growth rate from 3.4 percent to 3.8 percent, though commentators suggest it could be higher by year’s end.
Prof Prasad clarified that the Coalition Government is not inflating figures, unlike the previous FijiFirst Government. He noted that while facing economic headwinds from Australia and New Zealand and dealing with labor challenges, it is realistic to expect growth.
“We have revised our growth forecast downwards slightly, but the economy is still growing, not contracting as misunderstood by the Opposition. With the fiscal stimulus and economic optimism provided in the budget, this growth might be revised upwards,” Prof Prasad said.