In the next financial year, $750 million will be directly allocated to individuals to help counteract the rising cost of living. Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, highlighted that through the zero VAT on 22 listed items, $250 million that the government could collect in taxes will instead remain in people’s pockets.
Additionally, $40 million will be allocated 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 assistance, and support for first-time home buyers. These measures are in addition to other existing benefits provided to the public.
Professor Prasad stated that the additional $100 million in revenue collected will be used to support the population, acknowledging that many are still in the process of recovering financially post-COVID and the government is committed to being responsible in this regard.
The government has adjusted Fiji’s growth rate forecast from 3.4 percent to 3.8 percent, with the possibility of an even higher rate by the year’s end, according to some analysts. Prof. Prasad emphasized that the Coalition Government is not inflating these figures, as was allegedly done by the previous FijiFirst Government.
He clarified that while the growth forecast has been revised downwards, the economy is still expanding, not contracting as misunderstood by the Opposition. With the fiscal stimulus and economic optimism in the budget, there is a potential for the growth rate to be revised upwards.