Highlights from the 2019 Fiji Budget, a comment by Rabuka, and a note on Green and Blue Bonds

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Whatever you may think of the Government, you'd have to concede  their 2019 at least look impressive — and to this inexpert eye it certainly is. 

Government's economic performance may have come at costs, but there have been definite improvements along a broad front, despite Cyclone Winston that wiped out the equivalent of a third of the value of the county's GDP in 2016. 

This year's Budget was  preceded by an unprecedented level of  consultations, mainly thanks to an online Facebook page that had 50,00o visitors. This is good news, and promises well if Government also extends consultatons to people's organisations, and on other issues.  


 Here are some of the highlights in Minister of Economy Aiyaz Sayed-Khaiyum's Budget address.  Part I of the  full address can be accessed  by this link to the Fiji Sun article.

• Unprecedented economic growth for the tenth successive year
• Economy doubled since 2009
• Tax take at historic high without raising VAT, income or other taxes by filling loopholes that saw millions leaving the country
• Debt ratio projected  at 47.1% of  GDP, compared wth 53% in 2006.
• Unemployment at 4.8%, a 20-year low
• More villages with clean water and more health centres 
• Many new strong school building  to replace those damaged by Cyclone Winston, and 55 evacuation centres, some with generators and water tanks.
• The abolition of school fees
• Health spending up at $53.4 million
• $800,000 to combat drug trafficking
• $720,000 for four new intercept boats
• Ban on single-use plastics by 2020
• Encouragement of local production of renewable woven  bags (32% duty on imports by competitors)
• Ban on styrofoam by 2021

The environmental protection measures fit well with Fiji's international reputation on environment and climate change promoted by PM  Bainimarama.

Further,  the Environment and Climate Change Adaptation Levy  of 2017 has already raised $250 million which was used, among other things, to promote solar energy and "new technologies." In future, it will levy vehicles, smartphones, TV, washing machines and other white goods whose use or composition pollute the environment.

"Blue bonds",  following the earlier release of "Green bonds", will also be launched to help fund new protective measures of Fiji waters.  Fiji is  the first developing nation to use these bonds which "provide a market for private capital seeking to invest in climate resilience and adaptations".

Even before the Budget was released, SODELPA opposition leader Sitiveni Rabuka criticised it for not targeting a reduced national debt to 20% of GDP.  This was a strange remark, as  Sayed-Khaiyum pointed out, considering the 53% that existed before the 2006 Coup.

With an eye to the future, Sayed-Khaiyum also said Government would pass legislation to make it compulsory for political parties to cost the financial promises they make in their political manifestos. This should stop all parties from beguiling voters with fanciful  promises that they could not possibly fullfil. Voters be aware!

-- ACW

If you can access it, here's a link to The Fiji Times 12 page coverage.
12 page coverage of the budget. 
Expect the Opposition's response this week.