Prof. Prasad highlights economy shows promising growth, but Kumar questions impact on ordinary Fijians

With over a billion dollars in support for vulnerable and disadvantaged Fijians, debt to GDP ratio at 75.4 percent percent at the end of October, higher remittance flows, which is projected to reach around $1.3 billion this year and inflation easing to 0.8 percent last month, Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says they want to make sure that the result of this good news also flows to the ordinary people while Opposition MP Premila Kumar says numbers do not ease the daily struggles of ordinary Fijians as life has not improved.

While delivering his ministerial statement on the state of the economy, Professor Prasad says they have seen an increase in the cost of goods, particularly fuel, food, and transportation and the Government is acutely aware of the burden these places on Fijian households, and we are taking necessary measures to alleviate the cost of living.

The Deputy Prime Minister says in the 2024-2025 National Budget, he had announced numerous income enhancing measures such as increase in minimum wages and civil service salaries, they are continuing with the higher social welfare payments, restored pensions for FNPF pensioners that were affected by earlier reforms, providing targeted subsidies for electricity and water, providing back to school support for the 2025 school year, fully absorbing the new/higher bus fares for students receiving the transport assistance, providing the highest ever sugar cane price of over $105 per tonne, writing off $650 million in TELS debt for over 53,000 families, amongst other things. He says apart from this they have maintained the zero-rated VAT on 22 items in the budget.

Professor Prasad says this is over a billion dollars in support for our vulnerable and disadvantaged.

He further says the annual headline inflation (year-on-year) rate has fallen for the fourth consecutive month to 0.8 percent last month.

Professor Prasad says the Fiji economy is now forecast to grow by 3.8 percent in 2024, higher than the 2.8 percent growth projected earlier in June this year.

He says in the first 10 months of this year, visitor arrivals rose by 6.5 percent when compared to same period last year. Professor Prasad has also highlighted that Fiji has recorded new peaks for visitor arrivals in all the months this year and is going to hit a new record again this year of just below a million tourists.

He says in 2025, they are projecting visitor arrivals to grow by 4 percent.

He further says the increase in public sector salaries in the recent budget, increase in the national minimum wage, the strategic decision to have a higher fiscal deficit of 4.5 percent with an increase in Government spending, the higher remittance inflows which is projected to reach around $1.3 billion this year, the tourism induced pickup in demand and growth in commercial bank lending has helped consumption spending which has supported business and economic activity.

He says Government’s total revenue collection in the first three months of 2024-2025 financial year stood at $1.087 billion, while total expenditures amounted to $956.3 million.

While responding to the statement, Group of 16 Opposition MP Premila Kumar says the statement delivered by Professor Prasad is promising, and it paints a picture that Fiji is doing well, but she went on to ask if the economy is doing well, why are our people not feeling it.

Kumar also asked, how many Fijians have felt relief at the supermarket, or when paying utility bills and how many Fijians have seen their hard work translate into a better life for their family, with increase in duties, taxes, and VAT?

She says for many Fijians, the answer is clear, and that is, life has not improved, but instead, the cost of living has skyrocketed, and essential goods and services are becoming luxuries.

She adds even butter has become a luxury now and this government has not spared bread and butter, a daily staple, despite the election promise to reduce the cost of living.

Kumar says she can recall Professor Prasad promising during the campaign, that there will be a reduce in the price of beer, butter, and chops.

Kumar says the truth is that this government's economic policies are designed to serve a select few.

She says we have seen tax-free holidays given to Fiji Water, pay rise for lawyers and others earning about more than $250,000, all in the name of realignment and the government talks about economic growth.

She adds that the government that prioritises statistics over citizens has lost its way.

Meanwhile, Opposition Group of 9 Leader Viliame Naupoto thanked Professor for the update on the economy and the positive outlook it projects.