THE year 2018 will not be a mystery after all, one thing we are sure of is the continuation of State programs as stated in the 2017/2018 Budget.
To recap your memory, the $4.3 billion budget, announced by Attorney-General and Economy Minister Aiyaz Sayed-Khaiyum in June is the biggest ever for the country, which would see the Government borrowing $716.8 million to pay for the deficit.
This will be financed through overseas loans worth $184m and locally raised bonds totalling $532m.
The actual budget deficit is $499m, however, the debt rises to $716.8m when you add the Government’s debt repayments for the year amounting to $217m.
Of the $4.3b, at least 58 per cent will be spent on the operations of the Government, a higher cost this year because of the scheduled pay rises for civil servants.
About 40 per cent will be spent on capital works such as the upgrading of buildings, roads, construction of government facilities and purchase of equipment.
Fiji Revenue and Customs Authority, now known as the Fiji Revenue and Customs Service, will raise bulk of the government’s revenue from direct and indirect taxes estimated to be $3bn.
Highlights of the State budget:
* If you earn below $30,000, you no longer contribute to the state coffer through direct taxing but those earning above $270,000 continue to pay social responsibility tax as well as the environment and climate change adaptation levy of 10 per cent.
* Direct taxes is estimated to be $790m while indirect tax revenue, which includes value added tax, Customs, service turnover tax, water resource tax, departure tax, stamp duty, is expected to increase to $2.3b.
* Any shortfall in your tax deduction for the year will be paid by employers while FRCS has been shouldered with the additional responsibility of being the debt collector for students who had taken loans under the Tertiary Education Loans Scheme (TELS).
* Poverty Benefit Scheme (PBS): the 25,803 people benefiting from the scheme will receive a monthly allowance of $35-$127 per household, about $1-$4 a day. They will also receive food vouchers of $50 per month. An allocation of $38.1m has been set aside for this.
* Social Pension Scheme: As many as 34,002 citizens 65 years and above will get $100 a month.
* Food voucher program for rural pregnant mothers: the State has predicted the number of beneficiaries will increase from 1548 to 2076. Beneficiaries will now receive $50, an increase from $30. The State has, however, allocated $1.7m, if its estimation of the number of beneficiaries is correct, the cost to the State would be around $1.2m. The State has perhaps budgeted for an increase in beneficiaries.
* Child protection allowance: The program provides allowances for children from low-income families, single-parent families and prisoner dependents. Government has decided to increase the monthly allowance for this scheme $29-$69 per child and also the intake of child recipients from 4152 to 4696.
* Fiji Juvenile Rehabilitation & Development Centre: A budget of $138,000 to improve living conditions at the centre and provide a more conducive environment for the rehabilitation of juveniles.
* Allowance for people living with disability: A monthly allowance of $90 to assist people living with permanent physical disability. It has an allocation of $8m which is expected to support 11,400 recipients.
* Establishment of a new Institution for the psycho-socially challenged: Initial design and scoping works will be undertaken in 2017-2018 for the construction of a new centre. The centre will be Fiji’s central institution for the treatment of patients suffering from mental health disorders.
* Fiji National Council of Disabled Persons (FNCDP): FNCDP will receive a grant of about $1.2m to support its operations.
* Grant to organisations for persons with disability: Seven disabled persons organisations will receive a grant of $1.1m from the Ministry of Women, Social Welfare and Poverty Alleviation. A significant portion of this grant is earmarked for the construction of a new centre for disability in Lautoka.
* Procurement of special care equipment: A sum of $50,000 is allocated for the procurement of lifting hoists, wheelchairs and hi-lo beds for State-run aged-care homes.
* Renovation of state homes for the elderly: $300,000 for the renovation of three state-run homes for the elderly. These are; the Babasiga Home at Labasa, the Golden Age Home in Lautoka and the Samabula Senior Citizens Home in Suva.
* Women’s plan of action: $1.4m for the implementation of the government’s women’s plan of action 2010-2019.
* Grant to women’s institutions: $200,000 for the Makoi Vocational Centre and the Ba Women’s Forum for skills training and workshops.
* Domestic Violence Helpline: $200,000 to support the operations of the 24-hour Domestic Violence Helpline currently operated by the Fiji Women’s Crisis Centre.
