He doubts government will be able to collect the revenue required. There are lots of promises of "we will pay for this, and we will pay for that but just like in the past, the reality of the matter is that these schemes never work.
It's a budget based on assumptions that will, like other budgets, result in hopelessness and despair." (Biman would well heed China's President Xi who quoted the Māori proverb: "Face the sun and the shadows will fall behind you." We need something to cheer us up in these difficult times.)
The President of the Suva Retailers Association Jitesh Patel, however, disagrees with Biman. He calls it "a good budget because there is a lot of assistance for people who have been severely affected by the COVID-19 pandemic and unemployment."
He praised the continuation of the free education assistance, the provision of sanitary pads for schoolgirls, and the new assistance for businesses, adding that the $200 million in loans available to businesses to meet their working capital will be re-invested in the economy through spending of the people and in the end build the economy back.
The 2021-2022 National Budget
The budget is aimed at protecting Fijians from the coronavirus, supporting individuals and businesses and 'future proofing Fiji.' Almost 45% of the funds needs will come from loans. Click here for the RNZI news announcement, and here for the full budget.
Finance Minister Aiyaz Sayed-Khaiyum said there was nothing ordinary about this Budget, the Covid situation, and its effects on the economy. "It has crippled industries built through strong vision and years of steady investment. The arrival of the more virulent variants has sent its devastating toll to painful, new heights."
Funded by government revenue of $US1 billion of which about $US220 million is expected to come from direct taxes. Indirect taxes should bring in another $US530 million, with the deficit of $US770 million met from local and overseas loans.
The Budget, due for review in six months, includes government-funded benefits to those who take the vaccines as well as obligations to those who receive government allowances and scholarships.
Some $500 million in the will go towards upgrading, modernising, and expanding the road network and the provision of clean and safedrinking water and electricity.
$272 million is provided for the Fiji Roads Authority, $195 million to the Water Authority of Fiji and $26.6 million to the Ministry of Infrastructure and Meteorological Services.
This also includes over $11 million for grid extension and house wiring and rehabilitation of diesel schemes for communities that have been relocated to protect them from the rising seas.
The following piegraphs and table show most of the allocations.
My responsibility for any errors.
Total Budget Expenditures
ESTIMATED REVENUE:
Direct Taxes 457,159.1
Indirect Taxes 1,140,459.9
Others 330,329.4
Total Operating Receipts 1,927,948.4
Total Investing Receipts 157,156.5
TOTAL ESTIMATED REVENUE 2,085,104.9
ESTIMATED EXPENDITURE:
Operating 2,423,471.6
Capital 1,221,222.2
Value Added Tax 45,851.8
TOTAL ESTIMATED EXPENDITURE 3,690,545.6
Estimated Net Deficit 1,605,440.7
Debt Repayments 367,801.7
Gross Deficit 1,973,242.4
Posted by Crosbie Walsh on Sunday, July 18, 2021.
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