$750 million will go directly into people’s pockets in the next financial year to help subsidize the increased cost of living.
Deputy Prime Minister and Minister for Finance Professor Biman Prasad highlighted that through the zero VAT on 22 listed items, the $250 million that the Government could have collected in taxes is going back into people’s pockets.
He mentioned that an additional $40 million will be provided for Back-to-School Support, $78 million for Social Pensions, $44 million for Family Assistance, $17 million for Disability Allowance, $17 million for Child Protection Allowance, $10 million for Electricity Subsidy, $10 million for Water Subsidy, $10 million for Transport Subsidy, and $150 million for Scholarships.
Other initiatives include a free health scheme, kidney dialysis support, and assistance for first home buyers. These are supplementary to other benefits already available to the public.
Prof Prasad stated that an additional $100 million in revenue being collected is going towards supporting the people, acknowledging the continued transition to more income and better jobs post-COVID. He emphasized that it is the Government’s responsibility to be supportive during this period.
The Government has revised Fiji’s growth rate from 3.4 percent to 3.8 percent, with some commentators predicting it could be even higher by the end of the year.
Prof Prasad assured that the Coalition Government is not inflating numbers as was allegedly done by the previous FijiFirst Government. He noted that they are realistic about the challenges posed by the economic slowdown in Australia and New Zealand and the declining labor force. The revised growth forecast reflects these factors, but the economy is still expanding, contrary to opposition misunderstandings. With the fiscal stimulus and economic optimism outlined in the budget, there is a possibility that growth forecasts may be adjusted upwards.