Finance Minister Professor Biman Prasad emphasized the importance of sustainable revenue collection in an interview on The Lens@177 in Suva this week. He stated that the $3 billion revenue projection in the national budget is realistic and not driven by “political gimmicks.”
“We’re not about populist policies,” said Prof Prasad. “We’ve implemented measures that may seem unexciting but are in the long-term interests of the people. Revenue collection is crucial.”
He likened government finances to household finances, noting that persistent borrowing without a revenue source is unsustainable. “Just like families, if you keep borrowing without income, you can only do so to a certain point before you have to repay. A country operates similarly,” he explained, adding that the government is not overtaxing the economy.
Prof Prasad highlighted numerous incentives for investors and tax forgiveness, describing tax incentives provided to various economic sectors as nearly a billion dollars. This includes support for the tourism sector, agriculture, and indigenous businesses.
Additionally, he mentioned that the budget includes specific measures to promote and support indigenous businesses in the country. “It’s a very balanced, well-thought-out, and logical budget given our current economic context,” he concluded.