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PARLIAMENTPARLIAMENTOFOF THETHE REPUBLICREPUBLIC OFOFFIJIFIJIResearchResearch andand LibraryLibrary 2018Budget 2018–19: At a glanceBudget balanceMajor budget announcements 1000 grantfornewbornswhosemothersearn 30,000Five dayspaternityleaveIncrease intertiaryscholarshipsand loansFurtherfunding forkidneydialysisTariffs oncertain fruitandvegetablesremovedInvesting receiptsThe Government will be selling 44 percent of EFL in 2018-19, which was recently corporatised.Along with the disposal of other state assets, the total amount expected to be received through thedisposal of these assets is 395.4 million in 2018-19. This figure is included as part of total investingreceipts.Prepared by Research Services July 2018. Email: [email protected]

PARLIAMENT OF THE REPUBLIC OFFIJIResearch and Library ServicesBUDGET BRIEFINGS 2018Heads with the largest percentage change 2017–18 to 2018–19 Ministry of Waterways andEnvironment 135% Ministry of Housing and CommunityDevelopment 71% Office of the President 55% Fiji Police Force 32% Ministry of Rural and MaritimeDevelopment 30% Ministry of Civil Service 25% Ministry of Sugar Industry 23% Miscellaneous Services 21% Ministry of Public Enterprises 12% Ministry of Local Government 6%Economic . 2.9 3.4 2.5 3.2n/a3. 5.8 4.7 3.5 267.9 Jul-17Jul-18Jul-19Jul- 6.045.647.047.8 48.5GDP growth (% change from previous year)Current budget2017-18 BudgetWorld BankInflationTradeTourism: visitor days millionsCurrent account deficit (excl. aircraft) (% of GDP)Financial yearsBudget balanceReceipts bPayments bBudget deficit (% of GDP)Debt servicingInterest payments moverseasdomesticAs atDebt levelTotal debt bTotal debt (% of GDP)Notes: indicates the change from the previous financial year. Further notes on whether the figures are provisionalor forecast are at the end of this document.Prepared by Research Services July 2018. Email: [email protected]

PARLIAMENT OF THE REPUBLIC OFFIJIResearch and Library ServicesBUDGET BRIEFINGS 2018International outlook: growth prospects of trading partners20192018GlobalAustraliaNew ZealandChinaIndiaUnited StatesEuro zoneJapan0123456789%Government 2018-2019 Budget InitiativesFAMILY & HEALTHNew initiatives in the social services sector 5m Parenthood Assistance Payment, mothers from households earning 30,000provided a 1,000 grant in a bank account for each newborn child New paternity leave and increase in maternity leave from 84 to 98 days 1m for a new ‘Fiji Centre for Communicable Disease Control’ 2m new kidney treatment centres, 3.5m subsidy for kidney dialysis patients 100,000 for Domestic Violence Support Fund (DVSF) 500,000 for making buildings more inclusive and comfortable for people livingwith disabilitiesEDUCATION 1 billion Education sector funding: 535.4m for Ministry of Education, Heritage &Arts; 123.8m for Higher Education Institutions, 255m for scholarships and loans byTSLB Additional 46.5m and 43.8m respectively to expand the TELS Scheme andincrease the number of awards provided under the National Toppers Scheme New 2.3m Civil Service Scholarship Scheme for 10 civil servants and 50 teachers 300,000 to review the national school curriculum A scheme to incentivise early repayments of TELS debt to make the scheme selfsustainingPrepared by Research Services July 2018. Email: [email protected]

PARLIAMENT OF THE REPUBLIC OFFIJIResearch and Library ServicesBUDGET BRIEFINGS 2018INFRASTRUCTURE & TRANSPORTAn increase of 31.1m from the 2017-2018 Budget 50.8m towards rural electrification, an increase of 17m from 2017-2018 budget Strengthening of LTA’s enforcement work with creation of 62 new positions 1.7m to LTA for 6 new projects 900,000 for the upgrade of Buca Hydro Turbine and 300,000 for theimprovement of Buca Hydro Access Road. Fiscal duty on used cars below 2 years reduced to 15% from 32% or half the currentspecific rate. Concessionary duty rates for taxis extended to used diesel/petrol vehicles with anage of 2 years or lessCLIMATE CHANGEGovernment had introduced the Environment and Climate Adaptation Levy (ECAL)on prescribed goods, services and income to fund environmental and climate changeinitiatives 110.6m ECAL collected as at 30 April 2018, 106m ECAL funds used to fund disaster relief and response, meteorologyservices, rural development, cyclone rehabilitation, energy conservation, urbanand agricultural development and other initiatives Plastic bag levy will increase to 20cents per bag 1.25m ECAL threshold on licensed restaurants, bars, clubs etc. to be aligned to allother prescribed servicesOTHER INITIATIVES Merging of Ministry of Waterways and Department of Environment to form newministry150 percent tax deduction for cash contributions of 10,000-plus to corporatesponsors for hosting of the ADB Annual Meeting in 2019. 300,000 for decentralization of Births, deaths and Marriages services 1.0m digitisation program to preserve information for e-government portals 19m for Walesi satellite and mobile device access to free-to-air television stations 10m for new FCRS office in Nadi, national tax information HR informationsystems, first defender equipment purchases. 7.9m new initiatives in the Agriculture sectorPrepared by Research Services July 2018. Email: [email protected]

PARLIAMENT OF THE REPUBLIC OFFIJIResearch and Library ServicesBUDGET BRIEFINGS 2018Changes to taxationVehiclesTax The minimum amount of capital investmentrequired for the ElectricVehicle ChargingStations IncentivePackage reduced from 500,000 to 100,000. Duty on imported usedvehicles up to two yearsold reduced from 32percent to 15 percent(or half the currentspecific rate).Service tax A threshold of 1.25mwill apply to allprescribed services towhich the ServiceTurnover Tax (STT)currently applies.This threshold currentlyapplies to licensedrestaurants, bars, clubs,bistros and coffee shops.A 150 percent taxdeduction on wages andsalaries paid toemployees duringpaternity and family careleave.Introduction of a 250percent Research andDevelopment (R&D) taxdeduction on eligible ICTand Renewable EnergyIndustries R&D spending.Environment and climate A threshold of 1.25mwill apply to allprescribed services towhich theEnvironment andClimate Adaption Levy(ECAL) applies.This thresholdcurrently applies tolicensed restaurants,bars, clubs, bistrosand coffee shops. The 10 cents plasticbag levy to increase to20 cents per bag.Change in tariffs ondrinks Duty on imported teareduced from fivepercent to zero. Duty on importedsweetened andcarbonated drinksincreased to a higherspecific rate of duty of 32percent or 2 per litre.Reduction in tariffson food Duty on specificimported fruits andvegetables reducedfrom five percent tozero.These includesApples, Carrots,Oranges, MixedVegetables andSprouts.Prepared by Research Services July 2018. Email: [email protected]

PARLIAMENT OF THE REPUBLIC OFFIJIResearch and Library ServicesBUDGET BRIEFINGS 2018Aid-in-kindOffice of the Attorney GeneralMinistry of EconomyIndependent BodiesMinistry of Disaster Management and Meteorological ServicesMinistry of JusticeMinistry of Civil ServiceFiji Police ForceMinistry of Education, Heritage and ArtsMinistry of Health and Medical ServicesMinistry of Women, Children and Poverty AlleviationMinistry of Youth and SportsMinistry of AgricultureMinistry of FisheriesMinistry of Industry, Trade and TourismMinistry of Sugar IndustryMinistry of Public EnterprisesMinistry of Infrastructure and TransportWater Authority of FijiMinistry of Waterways and EnvironmentFiji Roads AuthorityMiscellaneous Services (000) 33,490.7Total Aid in Kind144,588.9146,667.9Note: Aid-in-kind amounts provide an approximate indication of aid resources applied by Ministries to various activities outside theBudget’s financial allocations and do not represent additional budgetary resources available to the Ministries. They includecontributions of materials, equipment and technical assistance. All assistance from development partners that go directly toorganisations or individuals are not reflected under aid-in-kind.Direct payments( 000)Ministry of 700.0Water Authority of FijiFiji Roads AuthorityTotal Direct Payments2,241.5 14,670.010,237.0 85,151.212,478.5 112,358.27,584.661,650.069,934.6Note: Direct payments are foreign-financed projects that are not part of the Government’s consolidated accounts but are reflected aspart of total expenditure.Prepared by Research Services July 2018. Email: [email protected]

PARLIAMENT OF THE REPUBLIC OFFIJIResearch and Library ServicesBUDGET BRIEFINGS 2018Creation of new heads and movement of functionsAgency/functionHousingLocal GovernmentEnvironmentWaterways2017-18 BudgetHead Head nameno.232018–19 BudgetHead Head nameno.37Department of HousingMinistry of Local Government andHousing233842Ministry of EnvironmentMinistry of Waterways4237Ministry of Housing andCommunity DevelopmentMinistry of Local GovernmentMinistry of Waterways andEnvironmentNotes: The Ministry of Housing and Community Development also includes the functions of the Department of Housing and the RuralHousing Unit, formerly under the Ministry of Rural and Maritime Development.The Ministry of Waterways and the Ministry of the Environment have been combined into a Ministry of Waterways and Environment.Economic statistics notes GDP growth rates are provisional for 2016, estimate for 2017, and forecasts for 2018 to2020.Annual inflation rates are actuals to 2017, then forecast figures for 2018 to 2020.Tourism visitor days are provisional for 2016 and 2017, then forecast figures for 2018 to2020.Current account deficit figures are provisional for 2016 and 2017, then forecasts for 2018 to2020.Government revenue and payment figures are actual for 2016–17, projection for 2017–18,budgeted for 2018–19, and targeted for 2019–20.Government interest and principal payments are actuals for 2016–17, estimates for 2017–18, and estimate for 2018–19.Sources Fijian Government (2018) Economic and fiscal update: supplement to the 2018–2019 budgetaddress, Ministry of Economy, 28 June 2018. [Hardcopy.]Fijian Government (2018) Budget estimates 2018–2019, Ministry of Economy, 28 June 2018.[Hardcopy.]Disclaimer - This information is provided to Members of Parliament in support of their parliamentary duties. It is a general briefingonly and should not be relied on as a substitute for specific advice. The Research and Library Team shall not be liable for any errorsor omissions, or for any loss or damage of any kind arising from its use, and may remove, vary or amend any information at any timewithout prior notice. The Fijian Parliament accepts no responsibility for any references or links to, or the content of, informationmaintained by third parties.Prepared by Research Services July 2018. Email: [email protected]

Ministry of Civil Service 583.8 1,056.4 Fiji Police Force 59.0 25.0 Ministry of Education, Heritage and Arts 23,638.2 18,608.3 Ministry of Health and Medical Services 10,642.7 16,766.0 Ministry of Women, Children and Poverty Alleviation 2,906.3 6,581.5 Ministry of Youth and Sports 212.3 - Ministry of Agriculture 8,662.8 9,216.8