FCOSS welcomes VAT cut, welfare boost, rural funding, and backs government debt plan

The Fiji Council of Social Services has welcomed the reduction in VAT to 12.5 percent, increase in social welfare assistance and funding for Ministry of Rural Development as it responds to some of the concerns for the citizens.

While speaking to fijivillage News following the 2025-2026 National Budget Announcement, FCOSS Executive Director Vani Catanasiga says in terms of the reduction of bus fare by 10 percent, the government is beginning to realise the experiences of ordinary citizens.

She says they still have to address the issue of the bus cards, which a lot of citizens have complained about.

Catanasiga says the government debt of more than $880 million in the next financial year in not a concern for FCOSS as the GDP to debt ratio has been decreasing slowly.

She says the government has demonstrated since they have come in that they have a strategy but they must stick to it and exercise some discipline in terms of expenditure.

She says they note the increase to the Ministry of Rural Development, particularly in terms of addressing critical infrastructure, roads, bridges, footpaths and light as this is something they had made submissions on and they are looking forward to how that is going to be implemented.

She says they also welcome the changes that have been taking place in the public finance management system as the government has removed ‘R’ in the budget or need for requisition process by which ministries can access funds.

Catanasiga says she hopes this translates to some traction on the ground in terms of capacity to implement, because that has been used as an excuse by various government departments for why works are delayed.

The 2025-2026 National Budget debate will start on the 14th of July.