The Fijian government’s recently unveiled ‘Rebuilding Our Future Together’ Budget aims to navigate Fiji’s economic crisis, stabilise revenue and debt levels, and provide support and funding for various sectors, with a focus on improving living standards and addressing critical needs.
The Budget allocates $FJ4.3 billion to address the high cost of living and the financial burdens resulting from the previous administration’s policies, the global pandemic, cyclones, and the impact of Russia’s war on Ukraine.
Biman Prasad, Deputy Prime Minister and Finance Minister of Fiji
Deputy Prime Minister and Minister of Finance Biman Prasad has emphasised the goal of improving the country’s economic crisis and enhancing living standards.
The budget reveals a deficit of $639 million, with total government expenditure amounting to $4.3 billion and projected revenue of $3.7 billion. About 25 per cent of the budget will be allocated to servicing the country’s substantial debt, which currently stands at almost 88.8 percent of GDP.
Significant spending and projects in the budget include tax policy adjustments. Value Added Tax (VAT) will increase to 15 per cent on most food items, injecting an estimated $446 million into the economy. Excise taxes on alcohol, tobacco, and carbonated/sugar-sweetened beverages will also rise. Additionally, there will be increases in motor vehicle import excise duty, corporate tax rates, and departure tax.
In the education sector, the budget allocates $845 million, with initiatives such as the forgiveness of Tertiary Scholarship and Loans Service debt and increased funding for the rebranded Fijian scholarship scheme. Salaries for teachers, back-to-school support, and investments in technical colleges and apprenticeship programs are also included.
The health sector receives a budget of $453.8 million, with increased funding for salaries, training, medical equipment, and public health programs. Furthermore, there are allocations for the maintenance and improvement of hospitals and health centres, as well as subsidies for kidney dialysis treatment.
The tourism industry will benefit from operating and marketing grants totalling $37 million, aiming to support new marketing strategies and promote tourism activities in Fiji.
Infrastructure, road maintenance, and water projects will receive significant funding, with allocations of $200 million and $250.8 million, respectively. Major initiatives include the completion of the Viria water project, revamping the Water Authority, and investments in road maintenance and upgrades.
Social welfare and pension programmes will see increased funding, including higher allowances for senior citizens and those on social welfare. The Ministry of Women, Children, and Social Protection will receive an increased budget of $200.2 million.
The culture and arts sector sees a significant budget increase, with the Ministry of iTaukei Affairs, Culture, Heritage, and Arts receiving $38.6 million. Additional funding will be allocated to strengthen iTaukei administration, provincial councils, and land development.
The agriculture and sugar industry will receive $95.2 million and $51.7 million, respectively. Support measures for non-sugar crops, such as rice, ginger, dalo, and cassava, will be introduced, along with initiatives to increase cane production.
Other sectors receiving budgetary allocations include fisheries, forestry, land administration, small and medium enterprises (SMEs), and communications.
To address the country’s economic challenges, the government plans to review the minimum wage rate and civil service remuneration. Ministers will take pay cuts, and reductions will be made to travel allowances and incidental allowances.
