No finance minister or government can operate without exploring options to collect a reasonable amount of revenue.
Finance Minister Professor Biman Prasad said in an interview on The Lens@177 in Suva this week that the $3 billion revenue projection in the national budget was realistic because the Government was not engaging in “political gimmicks.”
“We are not about populist policies,” he stated. “We have implemented measures that may seem boring and not flashy, but they serve the long-term interests of the people. Therefore, revenue collection is crucial.
“Just like families, if you keep borrowing without having an income source, you can only borrow up to a certain point. Eventually, you will need to repay that debt. Similarly, a country operates in the same manner.
“And we are not overtaxing the economy.”
Prof. Prasad noted that there were substantial incentives for investors and tax forgiveness in terms of beneficial incentives.
“Our calculations indicate that almost a billion dollars worth of tax incentives are extended to different sectors of the economy,” he added.
This includes the tourism sector, agriculture, and support for indigenous businesses.
Prof. Prasad mentioned that additional measures were included in the budget to support and promote indigenous businesses in the country.
“It is a very balanced, well-thought-out, and logical budget considering the current state of our economy,” he said.