Opposition Member of Parliament Premila Kumar has criticized the 2024-2025 National Budget, stating that it failed to address the high cost of living for ordinary Fijians due to the increase in Value Added Tax (VAT).
The government raised VAT from 9% to 15% in August despite calls for a decrease.
Kumar mentioned that the VAT increase and corporate tax will be transferred to the public and that the budget does not offer relief to those expecting it.
The budget outlines total expenditures of $4.552 billion and total income of $3.917 billion. Finance Minister Biman Prasad reported that the fiscal imbalance amounted to $635.5 million, or 4.5% of the GDP.
The nation’s debt-to-GDP ratio is anticipated to decrease to 77.8% by the end of next July, with aspirations of achieving lower levels by 2040.
