‘People’s budget’ realistic, says Labasa and Savusavu Chambers of Commerce
Labasa Chamber of Commerce and Industries president Vinesh Dayal and Savusavu Chamber of Commerce president Ravi Chhaganlal have labelled the 2024-2025 National Budget a people’s budget and realistic.
Following the announcement by the Minister for Finance Biman Prasad on Friday, Mr Dayal said progressive increment was smart to keep inflation low and civil service pay rise would help retain brain drain to some extent. Effective from August 1, 2024, all salary based civil servants will receive a pay rise of around seven per cent to 10 per cent while wage earners will get an increment ranging from 10 per cent up to 20 per cent.
“An economy can grow through increased spending whilst being mindful of our national debt and I believe it wasn’t an easy task for any Minister for Finance,” Mr Kumar said.
“We need to quickly rollout the infrastructure spending to improve service delivery and the increased wages should help create more economic activities.”
When asked about his view on tax he said the fiscal policy direction was realistic and budget was an honest one.
“We have to live within our means and grow the economy progressively,” he said.
“The bore holes for rural dwellers, rural roads, increased allocation for sugar industry, health, education and dredging have positive impact on Labasa economy.” Meanwhile, Mr Chhaganlal was happy with the announcement of national minimum wage increase to $4.50 an hour effective from August 1, 2024 and with a further increase to $5 an hour effective from April 1, 2025.
He said now the purchasing power would increase which means more business for them.
“As Mr Prasad said we have more than 42,000 publicly funded employees, including around 38,000 in the civil service and almost 4000 in independent institutions and state funded entities, imagine the changes they will bring into our business economy,” Mr Chhaganlal said.
“Moreover, with minimum wage increase the low-income earners would also be able to spend more than before.”
He said although he didn’t hear much about development for Vanua Levu, he was happy to note that there were some changes coming into people’s income.