Finance Minister Professor Biman Prasad has announced that the government’s fiscal strategies are effectively relieving households while simultaneously strengthening the economy. In a recent parliamentary session, he responded to concerns from Opposition MP Alvick Maharaj, asserting that Fiji’s economic performance is surpassing international expectations.
Professor Prasad shared that the Asian Development Bank (ADB) projects a growth rate of 3 percent for Fiji in 2025, though the government’s macroeconomic committee has proposed an even more optimistic forecast of 3.2 percent for the same year. He highlighted a notable decline in inflation, which averaged at a remarkable negative one percent from January to August this year, a substantial decrease compared to the same period in 2024. Specifically, inflation was recorded at -3.5 percent in August, down from 3.8 percent the previous year.
To alleviate financial pressures on citizens, the government has implemented additional fiscal measures beyond the original budget. A key action was the reduction of the Value Added Tax (VAT) from 15 percent to 12.5 percent, expected to put approximately $500 million back into the hands of the public. The minister also noted various duty cuts on essential goods, including chicken, fish, potatoes, garlic, onions, tea, cooking oil, fruits, and vegetables. He assured that a dedicated task force is monitoring these reductions to ensure the benefits reach consumers effectively.
Furthermore, Professor Prasad discussed various support initiatives for households, such as bus fare subsidies, a significant increase in the minimum wage, and improved prices for crops. He emphasized, “These measures are providing relief to many consumers in the country, and the official figures are very clear.”
These announcements come amid ongoing debates regarding the government’s fiscal policies and their real impact on living costs. The discourse has been fueled by previous concerns from MPs regarding whether economic advancements are translating into tangible benefits for citizens, particularly amid rising living expenses.
The recent favorable trend in inflation, combined with proactive government interventions, illustrates a committed effort to manage economic challenges. As the government prioritizes managing rising costs while promoting growth, there is a renewed sense of hope among the residents of Fiji that these initiatives will lead to more significant improvements in their daily lives, ultimately working towards a resilient and inclusive economy.