Page 9 - Islands Business June 2023

We Say

Fiji’s budget a test of unity promise—but has major economic
In the leadup to the coalition repercussions as that money needs to be
government’s 2023-2024 budget, found elsewhere.
citizens were warned by Prime Minister Opposition leader Inia Seruiratu would
Sitiveni Rabuka, Finance Minister Biman not comment after the budget was
Prasad, the Fiscal Review Committee delivered, saying we would have to wait
and international financial institutions until parliament debates the bill mid Front Page Pte Limited
that Fiji’s debt required dramatic July to hear his view. However his party GPO Box 12718, Suva, Fiji Islands.
measures. mate, Faiyaz Koya was critical, saying Tel: +679 9719660
In fact on the eve of the budget, PM the budget would do little to stimulate Sales & Advertising
Rabuka said sacrifices would need to or incentivise the private sector. marketing@islandsbusiness.com
be made, and that “a painful structural Prasad devoted considerable time Circulation & Distribution
reform of our social and economic during his budget speech talking about subs@islandsbusiness.com
system” would be required. the economic management of the Finance
So when the 2023-2024 Budget was previous government, acknowledging: finance@islandsbusiness.com
delivered by Deputy PM and Finance “Some people, will accuse me of
Minister, Biman Prasad at the end of talking only about the past. But this is Fiji stockists
June, Fijians had been softened up not the past. This is our present. As a Amy St Pharmacy - Amy St, Toorak, Suva
to the idea of impending economic doctor once told me, ‘90% of a patient’s Dominion Bookshop - BSP Life Building Arcade, Suva
hardship. diagnosis is his/her history.’ Because Ginger Kitchen, Fiji Museum
Prasad told the nation that nearly 25% it is now that we must find the money Hot Bread Kitchen - Damodar City, Suva; LICI building,
of the Government Budget this year will to fix these problems. It is now that Butt St, Suva; Namaka, Nadi; Rajendra’s Foodtown Complex,
Valelevu; Namoli Avenue, Lautoka.
go to servicing debt. we must find the money to meet our Kundan Singh Supermarkets - Pacific Harbour and
There were some mixed metaphors debt servicing payments. Our people’s Tamavua
when it came to Value Added Tax (VAT), present and future choices are now Nausori Airport Kiosk - Nausori International Airport,
with Prasad saying “we have to bite the restricted by those poor decisions of the Nausori
bullet” on VAT, but that this might prove past.” Palm Court Bistro - QBE Arcade, Victoria Parade, Suva
to be the “magic bullet” in the longer Prasad’s budget speech also gave Post Fiji - General Post Office, Suva; Nausori; Labasa.
term. forewarning on some specific legacy Raiwaqa Bakery: Nausori; Flagstaff; Marine Drive, Lami
As expected, VAT did increase to issues it remains concerned about and Samabula Drug Store - Samabula
15%, although zero-VAT was retained is investigating; the spending of $120 The Projects Collective - Colova Estate (The Beachouse),
on 21 items-and another, prescription million on the Walesi national digital Coral Coast, Korolevu
medicine, was added to that category. platform, and ‘urgent’ legislative USP Book Centre - USP Laucala Campus, Suva
The tax-free threshold was not changes on Capital Gains Tax, which he Vuda Marina General Store - Vuda Marina, Lautoka
reduced, as advocated by the World says benefited “one taxpayer” and cost Yees Xpressmart - Unit S22, Port Denarau, Nadi
Bank, but feared by many. the government almost $70 million in Regional
The Minister said government lost revenue. ASCC Le Bookstore - Pago Pago, American Samoa
will reinstate the allocation to the The Minister also flagged future Friendly Islands Bookshop – Nuku’alofa, Tonga
University of the South Pacific, has reviews to civil servants pay and Hachette Pacifique – Papeete, French Polynesia
increased allocations to iTaukei benefits, to the minimum wage rates, Heritage Park Hotel – Honiara, Solomon Islands
administration, and re-establish the and revamping of the apprenticeship
Public Works Department and Strategic scheme and the dairy industry. Naoero Postal Service Corporation (Nauru Post) – Civic
Centre, Aiwo District, Nauru
Planning Office. There are signals work Parliament will debate the budget Nouvelle Messageries Caledoniennes de Presse – Noumea,
permit requirements will be loosened from July 10 and given the enmity New Caledonia
up and that government will be looking evident between opposing sides of the Pacific Supplies – Rarotonga, Cook Islands
at a host of measures to improve the house, it’s sure to be a hot debate. Palau Community College Bookstore - Koror, Palau
ease of doing business. If it gets through, the expectation on Samoa Stationery and Books - Apia, Samoa
Spending allocations for health and government to deliver on its promises, South Seas Traders – Alofi, Niue
education were increased, as were and in particular, reduce the risk of Tuvalu Post - Funafuti, Tuvalu
allocations for the country’s failing leaving our children generational debt, Vanuatu Post - Port Vila, Vanuatu
water infrastructure, although that still will be immense. To do that, it will Yap Cooperative Association – Colonia, YAP, FSM
feels like the proverbial finger in the need to pull together in genuine unity,
dike. put the nation ahead of its own political
The decision to write off $650 ambitions, and find a way to stop any
million in student debt is a political white anting of its coalition.
imperative—it was a pre-election

Islands Business, June 2023 9