COVID-19 to make huge hit on Government budget
When people prepare their household budgets, either weekly or monthly, a lot depends on the projected revenue. For a long time in Fiji, people enjoyed good income, decent wages and salaries which reflected in their spending power.
We just need to look at the number of houses in our informal settlements which have two vehicles parked in their driveways. But that may not be the case today.
Today many are thankful that they still have jobs and a steady income.
When Government announces their national budget for the financial year 2020-2021, one thing is for sure, the projected revenue has taken a huge hit.
For example, every person flying out of Fiji paid a $200 departure tax. Given the current world fight against coronavirus, that revenue is no longer coming towards Government.
Add to that the service turnover tax, the Environment and Climate Adaptation Levy that tourists paid while staying in top end hotels has now disappeared.
An estimated $2billion from the tourism sector alone has disappeared overnight.
How long before the world opens for travel and tourists return to our shores?
We don’t know, the World Health Organisation does not know and either do the heads of Governments from where our majority tourists were coming from- Australia and New Zealand.
Fijian Government no doubt saw the benefits our inclusion in a Pacific bubble would bring to Fiji. That is why for past several months, Government policies were aimed at making Fiji COVID-19 free, having the careFiji app up and running is high on agenda which would be a good move towards tracking those who have tested positive with coronavirus and those who they may have come in contact with.
The 2020-2021 national budget would be a stringent one, one which is aimed stimulating our economy, a focus on agriculture, food security, construction sector.
There would be emphasis on our health sector which needs to be on a solid footing if we are to welcome tourists to our shores.
When Government announces their national budget for the financial year 20202021, one thing is for sure, the projected revenue has taken a huge hit.