The Government currently lacks an immediate solution to the ongoing rise in the cost of living, as stated by Deputy Prime Minister and Minister of Finance, Professor Biman Prasad. He has called on the public to adjust their expectations regarding expenses while emphasizing the need for persistent efforts to address increasing prices.
Prof Prasad noted that while certain measures have been introduced, such as tax relief and reductions in import duties, external factors—particularly inflation in significant trading partners like Australia and New Zealand—continue to exert pressure on prices in Fiji. Despite the implementation of strategies such as the zero VAT on 21 essential food items and the removal of duties on specific goods, the cost of living remains high.
To tackle this challenge, the Government has adopted a three-pronged approach. The first focus is on assisting the vulnerable populations who are unable to increase their income or access support. The second aspect involves policy adjustments aimed at reducing costs, including lowering duties on meat products and maintaining zero VAT on basic food items. Furthermore, Professor Prasad highlighted an expansion of the zero-rated list to encompass prescribed medicines, totaling 22 essential items.
He acknowledged that while these initiatives are steps in the right direction, they may not completely offset the rising costs. The minister also expressed that it’s unrealistic to expect prices to remain the same over a decade. As part of the third strategy, increasing incomes is crucial. He pointed out that the Government has successfully raised civil service salaries after a long period, marking the first significant pay rise for teachers and other public servants in Fiji’s history.
This approach reflects a commitment to adapting policy measures and enhancing income to support citizens in challenging economic times.
In a hopeful note, while immediate solutions may not be available, the ongoing efforts by the Government illustrate a proactive stance in addressing these economic challenges, aiming ultimately to improve the living standards of the people in Fiji.
Summary: The Fijian Government, represented by Deputy PM Biman Prasad, acknowledges the challenges posed by rising living costs and urges the public to adjust their expectations. Despite various measures implemented to alleviate financial pressures, such as tax relief and increased civil service pay, external inflation factors continue to affect prices. The Government is focused on supporting vulnerable populations, implementing policy changes, and increasing incomes to mitigate these challenges.
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