Government’s New Strategy to Combat Rising Living Costs Revealed!

Deputy Prime Minister and Minister of Finance Professor Biman Prasad has stated that the Government currently lacks immediate solutions to the escalating cost of living. He has urged citizens to manage their expectations regarding rising prices while highlighting the necessity for continuous efforts to mitigate these challenges.

Although the Government has introduced measures like tax relief and reduced import duties, Professor Prasad pointed out that external influences, particularly inflation in key trading partners such as Australia and New Zealand, continue to impact prices in Fiji. Despite initiatives including zero VAT on 21 essential food items and the removal of certain import duties, the cost of living remains elevated.

Professor Prasad outlined a three-pronged strategy to address this issue. The first aspect focuses on aiding vulnerable populations who struggle to increase their income. The second involves policy modifications aimed at reducing costs, such as lowering duties on meat products and maintaining zero VAT on essential food items. Additionally, the Government has expanded the list of zero-rated products to include prescribed medicines, increasing the total to 22 essential items.

While these actions are steps in the right direction, Professor Prasad acknowledged that they might not completely alleviate rising costs. He emphasized the need to raise overall income levels, mentioning that the Government has recently increased civil service salaries significantly, a move not seen in some time. He noted that teachers and civil servants had received notable pay raises, which is a positive development for public sector workers.

In summary, while the Government faces challenges in controlling living costs, it is actively exploring various strategies to support its citizens, particularly the most vulnerable. Continued efforts in policy adjustments and income increases could lead to improved financial stability for many families in the future. It’s crucial for the public to maintain realistic expectations while also looking forward to the positive changes being implemented.