“Fiscal policy widens the gap between rich and poor”

Current fiscal policies are widening the gap between the rich and the poor, says former FijiFirst MP Faiyaz Koya.

Responding during a debate in Parliament on the 2024-25 Budget on Monday, Mr Koya said the increase in the fringe benefit tax and other indirect taxes would be passed on to consumers, making everyday goods and services more expensive for the average Fijian.

“The policies of this government are burdening ordinary citizens while benefiting a few, and that is pretty much a given,” Mr Koya said.

“Tax collection is inadequate, raising concerns about the effectiveness of the government’s operations and its revenue generation strategy.

“And without solid revenues, the ability to fund essential services and support those at risk of exclusion is diminished.”

Mr Koya said the coalition government had not done enough for the poor and working class.

“Teachers feel undervalued and underpaid.

“Lack of initiatives aimed at retaining talent in the country and investing in human capital.

“There has been no significant project proposed, no significant infrastructure development, no concrete plans to help the poor.

“The government’s social protection measures are inadequate, leaving many vulnerable communities without the help they desperately need.

“I think one of the main reasons why the minister (finance minister) did not go to the countryside was that he knew what kind of reaction he would encounter there.”

Mr Koya said the budget lacked transparency and accountability.