Government’s Take on Rising Costs: What to Expect?

Deputy Prime Minister and Finance Minister Professor Biman Prasad has indicated that the government currently does not possess a quick fix for the escalating cost of living. He has urged citizens to temper their expectations regarding living costs, emphasizing a commitment to ongoing efforts to manage price increases.

Although the government has taken steps like implementing tax relief and reducing import duties, external influences, particularly inflation in major trading partners such as Australia and New Zealand, continue to drive up prices in Fiji. Despite measures like imposing zero VAT on 21 essential food items and removing duties on certain goods, the cost of living has nonetheless surged.

Professor Prasad outlined a three-pronged strategy to tackle the rising costs. First, the government aims to provide direct support to the most vulnerable segments of the population who may struggle to increase their income. The second initiative focuses on policy changes designed to alleviate costs, such as lowering duties on meat products while maintaining zero VAT on crucial food items. Recently, the government expanded the list of zero-rated items to include prescribed medicines, broadening it to encompass 22 essential items.

However, he acknowledged that these actions may not completely offset the cost increases. He remarked, “You can’t expect the price that was there 10 years ago to be the same this year,” pointing out that the third element of their approach involves enhancing people’s income. He noted the recent pay increases for civil servants as a significant step, particularly highlighting that teachers had never previously received a pay rise of 7 to 10 percent.

In light of these challenges, there is hope that the government’s multifaceted approach may eventually lead to improved economic conditions. By working on both income and cost factors, there is potential for relief for those struggling with the high cost of living.

Overall, as Fiji navigates these economic challenges, the government’s recognition of the issue and commitment to a strategic response offers a glimmer of hope for addressing the financial pressures faced by its citizens.