Fiji's 2019-2020 Budget

pn413

So far most comments on the 2019-20 Fiji Budget seem favourable but there is concern that cuts, and possible future cuts, to free milk in school, free school children's bus trips, and parental leave could herald a downsizing of targeted help for the young. Instances of misuse, cited by the AG, often herald the end of a service.

Vinaka vakalevu to Fiji Live that provides this overview. It is one of the three remaining free websites. The others are Fiji Village and Islands Business.  The Fiji Times now charges (over F$100 a year), and the Fiji Sun provides limited access. This makes obtaining media information for this blog very difficult.

Read what Fiji Live says and then visit Islands Business for  detailed breakdown of expenditures.

Fiji's 2019-2020 Budget announced

By Reginald Chandar in Fiji LiveJun 07, 2019 11:15:55 PM

The Fijian Government has budgeted a net deficit of $3.492 billion for the 2019-2020 fiscal year.

This equates to 2.7 percent of the country's Gross Domestic Product (GDP)
The net deficit is drawn from a budgeted total revenue of $3.491 billion and total expenditure of $3.840 billion.

Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum delivered the Budget in Parliament tonight.

Given the level of net deficit, Government’s debt stock is estimated to be around $5.978 billion or 47.1 percent of GDP at the end of July 2020.

Expenditure growth is around 4.8 percent with revenues projected to grow by 7.2 percent.
Tax revenue growth is expected to be around 5.9 percent in line with the nominal GDP growth rate.

 The relatively higher revenue growth is driven by higher growth of non-tax revenues. However, divestment receipt from EFL is budgeted at only $80 million, less than 20 percent of the planned divestment valuation, and much lower than what was budgeted in the previous fiscal year.

VAT revenue is expected to increase to $855.5 million in 2019-2020. Slower growth in VAT collections is expected in line with the current global economic slowdown and softening of domestic growth.

Inflation as of May 2019 stood at 2.1 percent, significantly lower than 4.8 percent recorded at the end of 2018.

With the current planned fiscal consolidation in the medium-term, the net deficit is projected to gradually decline to 2.0 percent in 2020-2021 and 1.5 percent in 2021-2022.
With an estimated deficit of 3.4 percent of GDP for 2018-2019, the debt to GDP ratio is projected to be 46.7 percent at the end of July 2019.

Debt is projected to be 47.1 percent of GDP at the end of July 2020.

Accordingly, debt as a percentage of GDP is expected to be around 46.7 percent in 2020-2021 and 45.9 percent in 2021-2022.

Capital Expenditure is projected to increase to $1.252 billion in 2019- 2020.