$750 million will directly benefit individuals 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 will return the $250 million that the government could have collected in taxes back to the people.
He mentioned 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 for Scholarships.
“The other initiatives include the free health scheme, kidney dialysis, and support for first-time homebuyers, which are in addition to all other benefits people are receiving,” he said.
Prof Prasad stated that the additional $100 million in revenue collected is earmarked to support the citizens, acknowledging that people are still transitioning into more income and better jobs post-COVID. He emphasized that the government is acting responsibly.
The government has revised Fiji’s growth rate from 3.4 percent to 3.8 percent, though some commentators believe it could be even higher by the end of the year.
Prof Prasad assured that the Coalition Government is not inflating the numbers, unlike the previous FijiFirst Government. He said the current government is not overstating growth projections despite facing headwinds from economic slowdowns in Australia and New Zealand, as well as domestic labor challenges.
“We have revised our growth forecast downwards, but the economy is still growing and not contracting, as misunderstood by the Opposition. With the fiscal stimulus and economic optimism outlined in the budget, there is a possibility that this growth will be revised upwards,” Prof Prasad added.