Fiji Labour Party Leader Mahendra Chaudhry

Fiji Labour Party Leader, Mahendra Chaudhry says the 2024/25 national budget must address the larger socio-economic problems in Fiji, the most urgent being poverty and the high cost of living.

Chaudhry suggests VAT rate must be reduced to nine percent.

He adds the increase in VAT was a blunder with grave consequences on poverty and the quality of life of the Fijian people.

Chaudhry claims that the experiment failed as the expected net gain in revenue by VAT increase has been minimal due to increased inflation and its negative impact on the economy at large.

He further says that the current four dollar an hour minimum wage rate is inadequate and should be increased to fix dollar effective 1st August and should be revised periodically and linked to the cost of living.

Chaudhry suggests that employers claiming inability to pay the minimum wage rate should to appear before a ‘Fair Wage Tribunal’ to justify their claim.

He adds that the Budget must provide for an acceptable settlement of the public service pay increase claims.

The FLP Leader says this will be in keeping with the Coalition’s campaign promises to the teachers, nurses and other civil servants.

Ministerial pay increases must be put on hold pending an independent review while travel expenses for ministers must be reduced.

Chaudhry says FNPF pensions unilaterally and unlawfully reduced in 2012 should be fully restored.

Further, he says the existing low annuity rate should be revised to 15% and pensions pegged to the cost of living.

Chaudhry believes the level of domestic debt is manageable and can support funding the budget deficit.

However, FLP strongly advices that the nominal amount of foreign debt is reduced by ensuring that debt repayments supersede new foreign loans.

Chaudhry adds that to increase civil service pays in line with inflation and for much needed capital investment, the Budget will need to incur a deficit of about six percent of the GDP.

He says the Coalition has failed to adequately invest in essential infrastructure such as health, water and roads – necessary to stimulate the economy.

The FLP Leader says the Coalition must not recklessly attempt to raise revenue without considering its detrimental impact on the lives of the people as it did by raising VAT to 15%.

Chaudhry says the government must seek sustainable ways to raise revenue and allocate funds for capital expenditure.

He also says that there must be a willingness to support and boost the sugar industry by increasing the $85 per tonne guaranteed price to $110.

Thereafter, Chaudhry says a review be undertaken to align it with the current cost of production, harvesting and transport.