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Budget Presentation to Nadi Chamber of Commerce

Budget Presentation to Nadi Chamber of Commerce. By Dr Rohit Kishore Fiji National University. Purpose of Government Budgets. Provide efficient management of the economy and accountability of public funds. Thus the budget should achieve the following objectives:

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Budget Presentation to Nadi Chamber of Commerce

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  1. Budget Presentation to Nadi Chamber of Commerce By Dr Rohit Kishore Fiji National University

  2. Purpose of Government Budgets Provide efficient management of the economy and accountability of public funds.Thus the budget should achieve the following objectives: • Whether the budget achieves its fiscal objectives? • Is the budget transparent and accountable; Accountability and Transparency! • Is the economic development commensurate with the size of the government expenditure? • Does the budget reflect the economic reality? • Does the budget promote sustainable development?

  3. Basis of 2019/20 Budget The five pillars as the key areas of focus of this budget: • Strengthening Law and Order, • Protecting the Natural Environment, • Empowering the Young, • Spurring Technology and Innovation and • Building Certainty in an Uncertain World.

  4. 2019/20 Budget at a Glance

  5. 2019/20 Budget at a Glance (Con’t) • Expenditure = $3.84 billion; revenue forecast = $3.49 billion, net deficit $349.2, = 2.7 percent of Gross Domestic Product • Reduction in about 1 billion expenditure • Reduction in number exercise and physical duties • Export income incentives • Full deduction for staff FNPF • Introduction ECAL on cars and white goods • Reduction in Plastic and Nabro Landfill Incentives • First home buyer scheme continues; Loan guarantee for 1.5m loan to housing authority at 0.05% fee

  6. Economic Issues • Economic Growth • Micro/Macroeconomics Factors (internal/external factors) • Import and Export, Current Account Balance and Foreign Reserve • Tourism Industry • Sugar Industry/non sugar agriculture sector • Resources Sector • Liquidity Issues • National Debt • Budget Deficit

  7. Problems of Small Economy of a Developing Nation • Heavy reliance on government funding to provide economic stimulus/incentives, etc. • High expectations from government to provide most services free • Private sector is small and narrow focus • Limited foreign investments and FDIs • Weak manufacturing sector, every things money • No social security net/ heavy reliance on FNPF • High level of import with limited foreign reserve

  8. Real Challenge of 2019/20 Budget • The Real Challenge; How is the 2019/20 budget going to stimulate the • much needed economic growth on the one hand, and reduce debt by • cutting expenditure on the other? • Expansionary Versus Contractionary budget polices • And to do so without increasing taxes and charges on businesses • And to continue providing all publics services; e.g.; health, education, support for low income earners, etc, etc

  9. The major operating grants provided in the Budget include: • Water Authority of Fiji - $ 89.0 million • Fiji National University - $ 56.2 million • Fiji Revenue and Customs Service - $ 55.2 million • Judiciary - $ 54.4 million • Social Pension Scheme - $ 46.0 million • Poverty Benefit Scheme - $ 36.0 million • Free Education Year 1-8 - $ 33.6 million • University of the South Pacific - $ 32.0 million • Free Education Year 9-13 - $ 30.1 million

  10. Land Transport Authority - $ 23.3 million • Bus Fare Assistance - $ 20.0 million • Fiji Roads Authority - $ 19.7 million • Grant to Fiji’s Servicemen’s After Care Fund - $ 11.7 million • Legal Aid Commission - $ 10.7 million • Parliament - $ 10.2 million • Bus Fare Programme for Elderly/ Disabled persons - $ 10.0 million • Tourism Fiji - $ 8.9 million • Child Protection Allowance - $ 8.0 million • Fiji Independent Commission Against Corruption - $ 8.0 million

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