The Coalition Government’s promise of economic prosperity, made during the 2022 general election, is now under scrutiny as Independent Member of Parliament Shalen Kumar raises concerns about unkept commitments two years on. During a recent speech in Parliament, Kumar highlighted the rising cost of living as a significant issue for many Fijians, noting that families are having difficulty affording basic necessities including food and utilities, as well as meeting traditional obligations.
Kumar pointed out the alarming rise in prices for essential goods, which he states is pushing more citizens into poverty. He referenced the erosion of purchasing power among most families, complicating their everyday financial management. Despite the government benefiting from increased tax revenues due to rising costs, it is ordinary families that bear the brunt of these inflationary pressures.
The Opposition has been particularly vocal in holding the government accountable for its economic strategies, asserting that the Minister of Finance’s efforts have not provided any meaningful relief for struggling citizens. Kumar reported a decline in investor confidence, with gross domestic investment currently at only 12.8 percent, highlighting the challenging economic environment.
Echoing the sentiments of other Opposition members, such as Hem Chand and Premila Kumar, Kumar criticized the recent budget for its lack of innovative strategies to alleviate the economic strain on citizens. Specifically, they have called attention to the persistent high VAT rate, which they argue exacerbates hardships for vulnerable populations.
To address these challenges, Kumar advocated for expanding the list of zero-rated VAT goods to include more essential items and suggested a reduction in the overall VAT rate. He believes these proposals could significantly relieve the financial burden on families, allowing them to better afford necessities without sacrificing their quality of life.
The discussions taking place among lawmakers signal a growing urgency to tackle the real challenges facing many Fijians, emphasizing that economic growth should benefit all citizens, not just a select few. There is hope that these ongoing conversations will lead to policy reforms aimed at creating a more inclusive economic landscape, ensuring that all citizens can partake in the nation’s recovery and future growth.
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