republikamagazine.com Insert to Repúblika | November/December 2013

BUDGET 2014 SPECIAL

EDUCATION REVOLUTIONn 19% of expenditure on edcation sectorn ‘No child left behind policy for smarter Fiji’n New schools and scholarship scheme

2 | Repúblika | BUDGET 2014 SPECIAL | republikamagazine.com November/December 2013

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EDUCATION

PUBLIC UTILITIES

LAW AND ORDER

GOOD GOVERNANCE & ACCOUNTABILITY

YOUTH & SPORT

2014 ELECTIONS

$15m to cater for ongoing prepatory works for 2014 general election. In addi-tion, Parliament office has

been provided with $7.1m to provide secretariat support and services in order to perform its functions.

Education will be a major priority for government in

2014, with $541.5m allocated for the sector. The fee grant to all primary and secondary schools (excluding 21 privately run schools) is aimed at a fee-free childhood education.Primary school fee grant: $250 per child per year.Secondary: Year 9 & 10 - $440; Year 11 & 12 - $485; Year 13 - $610.Scholarships: $26m Tertiary Education Loan Scheme: $52.5m ($40m for new scheme)

Vocational training: $5m Bus fare assistance: $20.8mNew funding model for institutions: $80.8m - USP, FNU, UniFiji, Centre for Appropriate Technology Devel-opment, Corpus Christi, Montfort Boys Town, Fulton College, Sangam Institute of Technology and Vive-kananda Technical College.New campuses/schools: New FNU Labasa campus - $3m, New FNU Navua campus - $2.5m, Bau Central College - $1.3m, St Francis, Nakoro-tubu, Ratu Lalabalavu - $0.7m

PRIORITY SECTORS

Upgrading of hospitals and health centres a major

focus. These major investments aim to decentralise and improve acces-sibility to health services200 more nurses, 155 more doc-tors: $10m CWM Hospital operat-ing theatre: $4.9m CWMH mater-nity unit extension: $3m Upgrade Lautoka Hospital: $5.9m Sigatoka Hospital extension: $1m Upgrade

Valelevu and Keiyasi health centres: $1m Relocation Naulu health centre: $0.25m New hospitals: Ba - $7.9m, Low Risk Makoi Maternity Unit - $0.6m, Nausori Hospital - $2mVaccines: $3.5m Consumables & laboratories: $3Dental equipment urban & sub-divi-sional hospitals: $0.4m Bio-medical equipment for urban & sub-division-al hospitals: $4.75m

HEALTH

Fiji Roads Authority: $474.1mMajor road projects: renewal and replace-

ment - $90.9m, bridge renewals - $50m, rural roads upgrade - $15m, Nakasi-Nausori four-lane project - $10m, Nadi four-lane project - $10m, Jetties maintenance - $8.9m,

Nabouwalu-Dreketi upgrade - $74.9m, Sigatoka-Serea upgrade - $27m, Buca Bay-Moto improve-ment - $22m Water Authority of Fiji: $139.6m Extension of power grid along King’s Highway from Tavua to Korovou: $9.4m Rural electrifica-tion project: $10m Somosomo hydro project: $1.3m

AGRICULTURESugar Ministry: $19.9m Upgrade of cane access roads: $2m Kavanagasau

bridge: $0.6m Agriculture Ministry: $62.4m Food security programme:

$1m Export promotion programme:

$1m Fertiliser subsidy for non-sugar

farmers: $1m Agriculture scholar-

ships: $1m

FISHERIES MINING

More emphasis to deter illegal, unregulated and

unreported fishing (IUU) activities. Coastal fisheries: $0.6m. Comple-tion of multi-species hatchery in Ra: $0.5m Seaweed development, pearl and oyster production, freshwater aquaculture, brackish water, and mariculture $2.2m Ice plant in Gau $0.6m

A total of five new mining permits are now in place: Viti Mining Limited, Vatukoula gold mine, Xinfa-Aurum bauxite mine, Wainivesi zinc mine and Amex iron sands mine. At September 2013, a total of 74 exploration licenses were issued, compared to 60 in 2012. This also includes 16 explora-tion licenses for deep sea mining.

Budgetary provisions for the major law enforce-

ment agencies have increased by $82.2m. Fiji Police Force: $111.8m Fiji Military Forces: $94.2m Fiji Correc-tions Service: $35.7m Construction of detention centre: $0.45m Legal Aid Commission $4.4m Upgrading existing court complexes $2m New Nasinu courthouse $0.5m Extension of Lautoka High Court $5m Rural and small town court services $0.5m Relo-cation of Ba Magistrates Court $0.3m Island Court Sittings $0.3m DPP $5.5m Ministry of Justice $4.9m Small Claims Tribunal $0.89m Peacekeeping mis-sions $71m

Auditor General’s office $4.02m Human Rights and Anti-Discrimination Commission $0.55m Accountability and Transparency $0.64m Freedom of Information $0.1m Fiji Independent Commission Against Corruption $8.6m

Engagement of coachs $2m Youth Capacity Building and Training Programme $0.6m Sports grant $1.1m Infrastructure upgrading at Naleba, Naqere, NYTC, Yavitu Training Cen-tre and National Youth Band Centre $0.765m

HOUSINGCity-wide squatter upgrad-ing project $0.5m Squat-

ter upgrading & resettlement $2m Lagilagi housing development project $3m Town-wide informal settlement upgrading project $1m Public Rental Board - Kalabu and Savusavu $4m

Sustainable income generating project $0.7m Housing Authority social hous-ing policy $1m PRB subsidy $1m Direct payments Exim Bank China PRB $10m,

HA - $12m Housing Assistance for first home buyers $10m

November/December 2013 3republikamagazine.com | BUDGET 2014 SPECIAL | Repúblika |

BUDGET 2014

A people’s budget

WHAT’S GONE UP WHAT’S GONE DOWN WHAT’S NEW

Budget aims to build a smarter Fiji

‘The people of Fiji must be taught that they deserve a Government that serves them. Not them serving the Government.’ ~ Bainimarama

Prime Minister Commodore Voreqe Bainimarama’s 2014 budget prioritises education with almost 19% of expenditure on the sector.

“Education is the greatest invest-ment a nation can make in its

future, and we cannot shortchange our future. Everyone benefits when we fully commit to the education of our children.

Education produces a competent and competitive workforce, a respon-sible citizenry, and people who will do everything from build our homes to cure our illnesses.

I am pleased to announce that edu-cation in the 2014 Budget takes up the largest share of Government spending – nearly 19 percent of the total Budget – and receives the largest share of the additional allocations. A total of $541.5 million is budgeted for the Education Sector.

And it involves major initiatives in primary, secondary and tertiary education that will radically overhaul the manner in which we educate our people.

For too long, we have talked about

making education more accessible, es-pecially for those from poorer families. But unlike our wealthier neighbours, Fiji has never had truly free education for all children. Many parents have had to live through the anguish and uncertainty of how to get their children through primary school, let alone sec-ondary school and a tertiary education. But all that is about to change.

Ladies and Gentlemen, it gives me great pleasure to announce that for the first time in our nation’s history, my Government will provide truly free pri-mary and secondary school education for all Fijian children. No child will be left behind. And no Fijian parent will ever go to bed again worrying about how they will meet their children’s school fees or any other fees. And far more children will now be able to go on to secondary school and tertiary education than at any other time in our history

It is not only the right thing to do. We are now obliged to do so under our new Constitution. And each tier of the education system is set to benefit from our massive investment in the future of our children and our nation.”

n Airport Departure Tax from $150 to $200n Increase excise duty on tobacco and alcohol by 10%.n Imported CD duty increase from $1 to $2

n Corporate tax rate for SPSE-listed companies from 18.5% to 10%n Duty on food supplements, baby bottles, adult sanitary dia-pers from 32% to 0%.n Duty reduced to 0% on impor-tation of spare parts for maritime vessels, agricultural items, n Duty on prefabricated kit home products reduced from 32% to 3%

n 150% tax deduction for voluntary cash contribution by businesses from $10,000 to $100,000 towards a

disaster fund.n Income tax exemptions for backpacker operators with annual sales turnover less than $1m.n Expansion of Tavua to Korovou tax free region to include other commercial activities along with dairy and agriculture. Sunset clause extended from 2014 to 2018. n 150% tax deduction for spon-sorship between $100,000 and $200,000 towards hiring of inter-national sporting coaches.n Seven-year tax holiday for ship-ping companies servicing uneco-nomical routes. Ring-fence uneco-nomical routes to include Lau group and Rotuma.n Waive withholding and capital gains taxes on interest income to investors of Unit Trusts.Increase SME tax exemption thresh-old from $300,000 to $500,000.n Citizens over 55 years and pen-sioners are exempted from resident withholding tax on interest income of up to $16,000 from bank depos-its provided this is their only source of income.n Introduce new excise duty of $1 for locally produced CDS.n Duty exemption on the importa-tion of raw materials and equip-ment used for the establishment used for the establishment of a backpacker hotel. n Allowable quantity of cigarettes to be purchased at duty free shops will be reduced from 250 grams to 200 grams. The minimum age for persons eligible to purchase ciga-rettes from duty free shops to be increased from 17 years to 18 years.n Duty concession on importation of household effects and vehicles by returning residents.

4 | Repúblika | BUDGET 2014 SPECIAL | republikamagazine.com November/December 2013

BUDGET 2014$

m

A win for consumers: council

STATE OF THE NATION

n The government debt estimate up to September 2013 is $3,718.10 million. n It is projected to be 48.3% of gdp in 2014 and forecasted at 47.3% of gdp and 45.9% of gdp for 2015 and 2016 respectively.

Estimated revenue

Estimated expenditure

Estimated net deficit

As a % of GDP

$2,721.8m

$2,883.3m

$161.5m

1.9%

n 2014 = 3% (2013 Revised Budget = 3.6 %) n Real gdp forecast of $4,848 million in 2014. n Tourist arrivals of 694,016 (2013 revised – 673,802) and sugar export of 189,100 tonnes expected for 2014 (2013 175,100 tonnes).

n The wages, salaries and interest component of total government expenditure is expected to be 37% for 2014 then increase to 44% and 45% in 2015 and 2016, respectively.

n The gross deficit for 2014 is projected at $385 million and the net deficit for 2014 is budgeted at $161 million or 1.9% of nominal gdp. In comparison, the initial forecasted 2013 net deficit of $219 million has been revised to $275 million.

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By PREMILA KUMARConsumer Council of Fiji Chief Executive Officer

The 2014 National Budget is a ‘win-ning budget’ for consumers. The

Consumer Council of Fiji is particularly happy with the two key policy an-nouncements by the Government that would address some problem areas for consumers.

One is the establishment of the Consumer Compensation Tribunal and second is the establishment of a task-force to monitor prices of duty-reduced items.

The Consumer Compensation Tribunal will adjudicate over claims on third party insurance and other con-sumer complaints.

The price monitoring taskforce which is to be formed in few weeks time will be monitoring prices of prod-

ucts that have had duty reductions. The Council has long argued that duty reductions often do not translate into lower retail prices for consumers. The Council also welcomes various other initiatives announced in the Budget to assist consumers to cope with the rising cost of living.

The biggest win is Government pro-viding ‘free education’ for all children in both primary and secondary schools. With this, parents will no longer have to worry about education costs which they used to bear in the past . They do not have to spend on school fees, tui-tion fees or any other fees.

Parents and guardians will be under less pressure with the Government’s policy on fundraising.

The Council is happy that the bus fare scheme, which has received extra funding from the Government, would mean more eligible students will be

able to benefit. The Council also ap-plauds the pay increases for the civil servants – this yet again means less pressure on their pockets and more money to spend.This is not only posi-tive for these consumers but for busi-nesses as well.

The Council overwhelmingly welcomes zero per cent duty reduction (from 32 per cent) on food supple-ments, baby bottles and adult sanitary diapers. Among other initiatives, sup-port has also been provided to shipping operators in the uneconomical routes. The Council believes this will benefit consumers in the outer islands.

The Council is encouraging con-sumers to make use of these initiatives to bring about a change in their living standard. We also remind them to continue exercising prudent financial management when spending their money.