Finance Minister Professor Biman Prasad announced that the government’s fiscal strategies are successfully providing relief to households while bolstering the economy. During a recent parliamentary session, he addressed concerns raised by Opposition MP Alvick Maharaj, stating that Fiji’s economic performance is exceeding international expectations.
Prof Prasad noted that the Asian Development Bank (ADB) anticipates a growth rate of 3 percent for Fiji in 2025; however, the government’s own macroeconomic committee has set a more optimistic forecast of 3.2 percent for that same year. He emphasized that inflation has shown a striking decline, averaging negative one percent from January to August of this year, a significant drop when compared to the same period in 2024. In August, inflation was recorded at -3.5 percent as opposed to 3.8 percent in the previous year.
In an effort to ease the financial burden on citizens, the government has introduced new fiscal measures beyond the initial budget. One of the pivotal actions taken was the reduction of the Value Added Tax (VAT) from 15 percent to 12.5 percent, which is projected to inject about $500 million directly into the pockets of the public. The minister highlighted various duty cuts on essential items such as chicken, fish, potatoes, garlic, onions, tea, cooking oil, fruits, and vegetables, assuring that a joint task force is monitoring these reductions to guarantee that the benefits reach consumers.
Prof Prasad also discussed additional support for households, which includes bus fare subsidies, a substantial increase in the minimum wage, and improved crop prices. He remarked, “These measures are providing relief to many consumers in the country, and the official figures are very clear.”
This announcement comes amid ongoing discussions about the government’s fiscal policies and their impact on living costs. The backdrop includes previous concerns raised by MPs about whether economic gains are effectively translating into tangible benefits for citizens, especially in light of rising living expenses.
The recent positive trend in inflation alongside government interventions reflects a proactive approach to economic management. As the government focuses on managing rising costs while stimulating growth, it fosters a sense of hope for the residents of Fiji that these initiatives will lead to a more substantial improvement in their everyday lives, promoting a resilient and inclusive economy.