Nilesh Lal, the executive director of Dialogue Fiji, has urged the government to reconsider the Value Added Tax (VAT) rate in the upcoming budget as a means of addressing the high cost of living within Fiji. He raised concerns about the reduced funding allocated to the Fiji Roads Authority (FRA) within the 2024-2025 National Budget, despite its other positive aspects.
The Finance Minister, Biman Prasad, announced on last Friday that the Public Works Ministry’s allocation comprises $721.4 million which includes the funding for the FRA and Water Authority. The FRA is to receive $354.8m for the maintenance and construction of roads, the upgrading and replacement of bridges and jetties, as well as rural road improvements.
Lal expressed worry about the dwindling state of the roads along with increasing costs for materials and labour, making the budget cuts a cause for concern. He warned that these cuts could mean less efficiency in maintaining and upgrading the country’s road infrastructure and could have lasting negative effects on national connectivity and economic activities.
Dialogue Fiji is set to host a post-budget forum in Suva on July 2, with keynote speaker Minister Prasad. Representatives from various sectors are expected to attend in order to discuss and deliberate on the budget implications. Lal emphasized the need for creating conditions to spur growth, and cautioned against fostering political instability that could hinder the same, especially if projected revenues in the budget fall short. Feedback can be provided at shratikan@fijisun.com.fj.