Fiji is currently grappling with the escalating cost of living, a situation that has become increasingly challenging for many families. Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, addressed this pressing issue at the recent Nadi Business Forum. He highlighted how external factors, including rising global commodity prices, geopolitical tensions, and supply chain disruptions, have intensified the financial burden on everyday Fijians.
Prasad pointed out that Fiji’s dependence on imports for around 60% of its consumer goods makes the country particularly susceptible to international economic fluctuations. In response, the Coalition Government has initiated several financial measures over the last two budgets aimed at alleviating these pressures. These measures include eliminating VAT on prescribed medications and providing substantial support for families preparing for the school year, which totals around $130 million for the 2023 to 2025 school years.
The government has also increased social pension amounts, with notable rises of 15% for individuals aged between 65 and 70 and 25% for those aged 75 and above. Other measures include raising family assistance allowances and minimum wages, with civil service salaries seeing increases ranging from 8% to 20%. Additionally, funding for student transport allowances has seen a significant increase from $37 million to $60 million to counteract rising bus fare costs while also addressing over $650 million in student debt through targeted debt forgiveness.
Prasad emphasized the essential role of the private sector in this economic landscape, urging businesses to adopt fair pricing practices and enhance operational effectiveness while fostering sustainable profitability. He expressed concern regarding certain industries exploiting protective measures that prevent competition, which can lead to unreasonable pricing.
Looking toward future budgets, Prasad affirmed the government’s commitment to exploring further measures tailored to ease the financial strain on households. The goal is to provide meaningful relief in light of the ongoing economic challenges.
This proactive approach reflects a dedication to addressing both short-term pressures and long-term economic sustainability for the citizens of Fiji. With a commitment to engaging with the private sector and implementing effective financial policies, there is hope that these initiatives will contribute positively to improving the cost of living and economic stability in the island nation.
Leave a comment