GOVERNMENT last night announced a $1 billion COVID-19 stimulus budget in partnership with the Fiji National Provident Fund and other financial sector partners.
Attorney-General and Minister for Economy Aiyaz Sayed-Khaiyum outlined details of the package while delivering the COVID-19 Supplementary Appropriation Bill 2020.
Mr Sayed-Khaiyum said in the wake of COVID-19, the Asian Development Bank said it would top up its previously-pledged funding of $US100 million by up to $US100 million ($F232.7m) more and the World Bank was also offering Fiji $US5.5 million ($F12.7m) from its COVID-19 facility.
“From 6 April 2020, Fijian workers in the hospitality sector who have lost their jobs or have had their hours cut since 1 February 2020 can –– for now –– access an initial $1000 from their FNPF accounts, with additional funds to be considered as the situation unfolds further,” he said.
“If any worker does not have this full amount available, Government will directly subsidise the difference.
“So, if you only have $100 in your account, you’ll be receiving a $900 boost from your Government.
“All those employees affected by our nationwide physical distancing requirements who worked at gyms, fitness centres, swimming pools and nightclubs, along with employees in the Lautoka confined area who have been placed on leave without pay or had their hours cut, will be able to access an initial $500 from their FNPF accounts
Mr Sayed-Khaiyum said if other parts of the country were locked down, impacted workers in those areas would also be able to access the same payments.
The A-G said Government would also provide a one-off relief payment of $150 per person for all street traders or those who had hawkers licences.
“For all employees in Fiji, we will reduce their FNPF contribution from 8 per cent to five per cent effective from 1 April 2020 through December 31 2020 –– putting $80 million in the pockets of Fijian workers for the next nine months, while still maintaining a steady contribution to their superannuation scheme.
“These measures — through FNPF — will inject at least a total of $150 million back into the economy, topped off with another $60 million contribution from Government.
Mr Sayed-Khaiyum also announced a range of initiatives designed to assist business owners, including a reduction in employers FNPF Statutory Contributions from ten per cent to five per cent, from April 1 to December 31, 2020.
“Over the next nine months, this will keep $130 million in their accounts –– helping them sustain their business and cash flow and minimise job losses and hour reductions.
“This budget lifts financial burdens from the shoulders of those made most vulnerable by the devastation of this virus, keeping services running, balance sheets buoyed, and workers healthy.”
