A bold step has to be taken to fix our roads and overcome this ongoing problem that Fijians have been facing for years.
Prime Minister, Commodore Voreqe Bainimarama has announced a historic increase in the infrastructure budget for next year focusing on improving road conditions around the country.
The Fiji Roads Authority has been allocated $422 million.
This is the highest allocation ever to fix and upgrade our roads around the country.
Commodore Bainimarama said it is critical to get the roads fixed.
He said everyone knows this will not be cheap.
Fiji Roads Authority Manager Mike Rudge said that they are focused on the task ahead with the massive amount of work to be carried out. Rudge said people who have worked well in the Roads Department will be hired by the overseas contractors.
The national deficit will increase next year from 1.9 percent to 2.8 percent and Commodore Bainimarama said bold steps have to be taken to overcome our greatest infrastructure problem.
For next year, $2.1 billion is set as projected revenue while $2.3 billion has been set as projected expenditure.
The Government will borrow $253 million through off shore loans to finance infrastructure projects for next year.
Permanent Secretary for Finance Filimoni Waqabaca said it will take them about fifteen to twenty years to pay off the loans which will be repaid through government's revenue.
Fiji Roads Authority upgrading project has an ADB loan of $10 million.
The Queens Highway upgrade has a $40 million loan from EXIM Bank, Malaysia.
The Sigatoka, Serea road improvement has a $22 million loan from EXIM Bank China.
The Buca bay/Moto road has a $24 million loan from EXIM Bank china while the Nabouwalu/Dreketi road upgrading has a $80 million dollars loan from Exim bank of Malaysia.
Expect to pay less for electricity from next year.
This is after a five cents reduction in electricity per unit across all tariff bands announced by government.
This is due to the fact that FEA is now targeting at least 90 percent of total energy requirements through renewable sources.
They have already reached 60 percent with the Nadarivatu Hydro Scheme on line.
Government also based its assessment by the Commerce Commission to reduce the price of electricity.
The Income Tax Threshold has been increased from $15,600 to $16,000 for next year which means that anyone earning $16,000 or less will not pay income tax from 2013.
Looking at duties and taxes,
Prices of cigarettes and all types of alcohol will go up by 10 percent.
As every year, this increase will be effective as soon as the suppliers release the new retail prices.
The prices of imported liquid milk, powdered milk, yoghurt, cheese put up for retail sale not exceeding 1kg will also increase as the duty will increase from 15 percent to 32 percent.
A Green Tax has been introduced.
The increase in fiscal duty on motor spirits has been increased from 44cents a litre to 46cents a litre.
For automotive and industrial diesel oil, the duty will increase from 18cents to 20cents a litre.
The Green Tax will not apply on white benzine, kerosene, pre-mix and for inter island vessels.
There is good news as duty on smart phones has been reduced from 5 percent to 0 percent while import excise duty on vegetables will be reduced from 10 percent to 0 percent in line with the zero duty of fruit.
A major initiative to encourage school leavers to become farmers has been announced.
A scholarship program in conjunction with the Fiji National University will start next year where 50 Form Six or Seven graduates each year will attend a 12 month certificate course that trains them in various agricultural disciplines.
When they graduate, each student will receive a loan package to the value of $70,000, to cover the costs of farm land, a tractor and basic farm implements, fertilizer and other materials, a house and shed and start up cash of $2,000.
Commodore Bainimarama said each student will be supervised by an agricultural extension officer, and given specific performance targets.
The Government hopes to attract many more young people to become farmers, give them sustainable livelihoods, boost the nation's food security, and reduce Fiji's dependence on imported food.
$5 million has been allocated for a new scholarship program to cover tuition fees for more than 1,000 students to undertake vocational courses, through the Fiji National University, to help them acquire specialised trade skills.
This is to enable them to become certified plumbers, electricians, deckhands, carpenters, mechanics and engineers.
Good news as the free text book and bus fare assistance schemes will continue next year.
$1.2 million allocated for vocational training/programmes in 124 schools.
Generous tax concessions will also be given to people who donate computers valued at more than $10,000 to schools.
In an effort to stimulate economic development, the region between Korovou to Tavua will be declared a tax free region for the agricultural sector.
A 13 year tax holiday will be in place for new investments in the agricultural sector and a 20 year tax holiday will be available for those who set up new dairy farms in the region.
Foreign companies that establish or relocate their headquarters to Fiji will be subject to a low corporate tax rate of 17%.
Companies that list or are listed on the South Pacific Stock Exchange will now pay a reduced corporate tax rate of 18.5% as opposed to the normal corporate tax rate of 20 percent. The existing tax deductions and incentives for listing will continue.
A total of $32 million has been allocated to Social Welfare Ministry for their Social Protection Programs.
13,000 households will receive a maximum assistance of $150 per month including $30 worth of food voucher from next year.
The coverage of the population living in poverty will increase from 3 percent to 10 percent going into next year for which a budget of $22.7miilion has been set.
A new initiative which will start from next year will see the elderly over 70 years of age having no source of income receiving a $30 pension from government for which $3.2 million has been allocated.
Also $500,000 has been allocated to the ministry for the welfare graduation scheme to focus on making welfare assistance recipients to become independent.
Story by: Vijay Narayan
