2014 Fiji Budget Expected To Be Announced Soon

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Previous budget focused funds on road improvements

SUVA, Fiji (Fijilive, Nov. 5, 2013) – Reforms aimed to reduce fiscal deficits, assist and encourage private sector investments and to improve revenue compliance and economic activity are expected to be considered in Fiji’s 2014 budget to be announced on Friday.

Majority of the expenditure is also expected to focus on holding a free and fair 2014 election by 30 September which is vital to the country’s economy given that it will decide whether or not foreign aid that were either fully or partly suspended are restored in full.

Particularly given that significant investment incentives made by government in recent budgets have not reflected positively in the overall level of investment.

In their August report, the IMF said successful democratic elections plus implementation of deeper and faster structural reforms to boost investor confidence could trigger a surge in foreign investment and development aid to help raise potential growth.

Meanwhile, the 2013 budget was focused on the roads sector, which comprised 55 percent of all capital expenditure which also contributed to the budget deficit at 2.8 percent of the GDP.

The Fiji Roads Authority received FJ$422 million [US$228.8 million] in the budget – FJ$395 million [US$214.1 million] for capital expenditure and FJ$27 million [US$14.6 million] for operating expenditure - an increase of FJ$182 million [US$98.7 million] from last year.

Other aspects of the 2013 budget noted increases in expenditure on health, and education, establishment of state pensions for elderly Fijians with no savings, reduction in income tax rates and creation of special economic zones in certain rural areas, among others.

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