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Many Fijians are feeling the pressure of rising prices, but the government says it is taking concrete steps to stabilize costs and ease financial burdens on families.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad outlined the government’s strategy, emphasizing reforms to the financial and tax systems to ensure more money stays in the pockets of ordinary Fijians.

“Before we came into government, there were three VAT rates – 0, 9, and 15 percent – which led to revenue leakage. We removed the 9 percent rate, kept 0 and 15 percent, and added prescribed medicine to the list of 22 zero-rated items,”

Professor Prasad says the government has also invested heavily in social support programs.

He says the back-to-school support scheme alone has provided $200 each to over 200,000 students every year since 2023, totaling more than $130 million over three years, and the social welfare allowances have increased by 15 to 25 percent, with additional increments in the last budget, while the minimum wage has steadily risen from $4 in 2023 to $5 this year. Civil service salaries have also been increased.

He adds that to ease the cost of essentials, the government has reduced duties on meat, butter, ghee, and other imported products, while ensuring local incomes rise to match international price changes.

“Even if import duties are zero, some products will still rise in price due to global markets. That’s why we’ve increased sugarcane prices, rice prices, and provided bus fare, electricity, and water subsidies,”

Professor Prasad says these measures, coupled with sound fiscal management, have resulted in a positive economic outlook.

He says inflation has fallen over the last seven months, revenue collection has exceeded budgeted targets, and the debt-to-GDP ratio has fallen below 80 percent from 90 percent.

The Deputy PM says the Asian Development Bank has commended the government’s economic management, noting its transparency, accountability, and focus on protecting Fijians from the cost-of-living pressures.

“All this is an effort to improve not only accessibility, availability, but also medicine that we can source cheaply from India.”

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