NFP leader Biman Prasad: "Government’s decision to change the annual financial year to August 1-July 31 instead of the long-standing tradition of a financial year being January 1- December 31, is deceptive and illogical"

29/3/2016

The reasons for the change as announced by the Attorney General and Minister for Finance vindicates the Opposition and NFP when the Opposition’s Spokesperson on Finance described the 2016 Budget on 16th November 2015 as a “A Deceptive Budget of a Confused Government”.

A little over four months later Government, in an effort to camouflage the unsustainability of the Budget, has outlined reasons that defy logic in an effort to convince the people of the need to change the financial year. On 10th March he spoke of re-aligning the Budget, which was and is the logical thing to do. Three weeks later, he has changed his tune.

The most nonsensical reasons are that FRCA (Fiji Revenue & Customs Authority) received late payment of taxes on 31st December around 4.30pm and that in December most officers are on holiday or in holiday mode! This is insulting the honesty, efficiency and hard work of our public servants, especially those tasked with the responsibility of implementing fiscal policies outlined in every annual national budget.

If the financial year ends on July 31 and FRCA once again receives a substantial amount in tax revenue late on that day, does this mean that the financial year will once again be changed? Or for that matter another natural disaster or severe cyclone hits Fiji, will there be another change to Government’s Financial Year?

The fact is that the current financial year has been the standard since our Independent history for the last 45 years. We have had more than our fair share of natural disasters. But financial years were not changed.

Instead we had Mini Budgets or virement of funds from different budgetary Heads as approved by Parliament. Or in most severe cases parliamentary approval was sought to raise loans to meet the costs of unbudgeted expenditure.

When the NFP moved amendments to increase the Disaster Mitigation Fund allocation in the 2016 Budget from $1 million to $10 million and to increase the grant for cane replanting programme from $5 million to $10 million, Government and the Finance Minister rejected these amendments saying when the need arose, funds could be sourced through virement from Head 50, which is Miscellaneous. We have been once again vindicated.

The NFP believes in the absence of a good budget process, which should include making public quarterly and six-monthly financial statements assessing our financial performance for every sector, there is no need to change the financial year, which is basically like changing horses in mid-stream. It will only mask the reality – the unsustainability of a deceptive budget and under-performing sectors.

The best option that we have been advocating is for Government to introduce a Mini Budget to re-prioritize expenditure towards rehabilitation. A starting point is to slash the inflated budgets of our military and peacekeeping and instead demand the United Nations to repay all outstanding amounts to fund this; reduce the budget of Fiji Roads Authority which is currently over $600 million, slash the Fiji Broadcasting Corporation public service broadcast grant of over $11 million; as well as re-direct marketing and hosting expenses of $9 million allocated for the international golf tournament, over $6 million for a one-off Super Rugby match and $18 million to Fiji Airways to promote its Singapore route.

These are measures that we will support in Parliament that must be done through a Mini Budget, definitely not changing the financial year.

Biman Prasad
NFP Leader
Shadow Finance Minister

Financial year to begin from 1st August to following July - Aiyaz Khaiyum

Attorney General, Aiyaz Sayed Khaiyum.Fiji will now begin its financial year from the 1st of August this year until the following July.

While speaking at a press conference the Attorney General Aiyaz Sayed-Khaiyum says they have held meetings with the World Bank regarding this issue.

He also says most of the companies pay their taxes in December, and with this new financial year the taxes paid in December will still be recorded for 2016.

He says small economies like Fiji are running a very tight budget where our stated deficits can get out of balance.

Sayed-Khaiyum adds another reason for changing our financial year is because most of the people go on holiday mode in December and early January and our economy may suffer from this issue.

He also says that if our financial year starts from January, we are smacked in the middle of the cyclone season. Source: Fijivillage News

22 Comments

[email protected]

29/3/2016 09:35:49 am

No need to change the financial year from 1 January to 31 December.

Reason given for change by Kai Yum lack merit.

tuks

29/3/2016 11:07:33 am

Another academic has his hour of limelight.

Kaila

Kumar

29/3/2016 12:10:39 pm

This Tuk fellow - reads like Kai Yum's tushy. Prof. Biman is a highly regarded economist. Kai Yum doesnt even understand the meaning of economist, let alone the economy. Afterall, not able to manage his own personal finances, he was on the verge of bankruptcy when Tappoos and the Bai coup saved him. We have idiots like Kai Yum now running our public purse, and his tushy wiped by people like Tuks.

Dekho

29/3/2016 07:29:23 pm

Look, it's a " new " Fiji so the architects of the " new " Fiji must show their new ways of ordering Fiji society, even if they are only irrevelant, meaningless and pretentious ones. Aiyaz Khaiyum has shown himself to be a master craftsman when it comes to doing such things. He makes out he is a Mr Know All when in fact we know he is phuck all. A man who is where he is courtesy of Bainimarama's armed robbery of the Government of Fiji. By contrast Professor Biman Prasad and Professor Wadan Narsey have acquired what they have acquired - on merit. That's a fact.

LOOK LIKE A FOOL

29/3/2016 08:47:05 pm

hahahahah this is just getting better ......caught in its own trap . now kaiyum wants to change the financial closing and opening dates .might as well change Christmas to November so no one in on holiday mode .

Rajend Naidu

29/3/2016 10:27:19 pm

Editor,
Preventing the Truth being Heard
Jewish Voice For Peace informs us in the article ' He filmed a killing: Now he's in danger'( 30/03) that a 21 y o Palestinian " was shot, at point blank range while lying wounded on the ground. These extrajudicial killings are a near daily occurrence in Israel/Palestine, but this time was different : a video was recorded, and it's gone viral. The video is gruesome and upsetting, but it proves beyond all doubt that an IDF( Israeli Defence Force) soldier killed a wounded man lying on the ground. If Emad Abu-Shamsiya, a shoemaker and human rights worker, hadn't grabbed his camera, we might never have known the truth. But many in Israel are deeply invested in preventing the truth being heard. They know that their racist policies and human rights abuse depend on a code of silence within Israel and unquestioning support outside it..."
Any parallels with what we have encountered in Fiji, like for instance the Fijileaks " Torture Video"?
Sincerely,
Rajend Naidu

FMP

29/3/2016 10:53:47 pm

Why does it matter if it changes! Biman disagreeing is a personal matter. If the change is down to Khaiyum paltering then fair point, however if its cyclone Winston then its pellucid.

Stating past natural disasters is irrelevant since Winston has been the most devastating. All of which has been well documented World wide.

Focusing on the budget dates is either a fools errand or PR stunt. Especially given last year's budget response from the opposition leader was to question School children's milk and Qarase's pension.

Perhaps this year they should ask a little bit more questions even if it's controversial because that will get us stand up and take an interest.

Simply the budget dates is not important. What's in it, is the G spot.

josh

29/3/2016 11:31:43 pm

Dr Biman is right. It is a superficial way to be seen to be addressing the fiscal problem but are in fact masking the real extent of it. Go phuck your own G spot!

tuks

30/3/2016 12:25:01 am

It's looks like Kumar is already wiping someone clean with his bare hands.

Semi Kuboutawa

30/3/2016 01:26:22 am

All along, many Fijians have been fully convinced that the only and best alternative Fiji Government is indeed my National Federation Party!! NO OTHER!

For now, little may be achieved from all the barking and cyber spews targeted at Mr Bainimarama and his favoured Money/Legal and all things Guru Mr Aiyaz. But..but..their tenure of near absolute power is coming to a close soon!

HOW? glad you asked..Back to the simple arithmetic table...where the present FFP Gov could only be ousted by the rest of us, though ironical, playing along with their election rule book, and this time around a bit more wisdom in nurturing and harvesting the valuable votes!

But, again if the duo could change the end of financial year at a whim..uh...could they also do the same by extending a term of Government to 10 years? ..and may be citing winston rebuilding needs continuity and not unnecessarily side tracked by yet another mud slinging election campaign??

For now though, the NFP remains the most worthy opposition voice and best alternative Government with extra seats the next time around when the taste of the winston goodies would have far gone from the taste buds of the many who for now glorify to messianic status my tauvu from Kiuva and his prophet from Nadroga.

Vili

30/3/2016 12:14:34 pm

Vinaka Ratu Tau. Sa tu evei e na gauna oqo na turaga qaqa mai Namuka, o Pramod Rae?

Au taro wale tiko ga.

Vinaka

Semi Kuboutawa

30/3/2016 01:29:45 pm

Ni bula vinaka Ratu Vili..qo, sa waraki kemodou tu ga mai uluda mo dou vu mai, keitou mai lade e ke..lol...lol..

Pita

30/3/2016 03:19:00 am

FMP the only G spot is that which exists in yr brain and which blurs yr mind to common sense proposals fm the Opposition leader whose budget speech last year was the best budget reply ever

Rajend Naidu

30/3/2016 07:54:39 am

Editor,
A Third World Phenomenon
We read in the Wall Street Journal article ' Donald Trump Campaign Manager Charged With Battery' (29/03) that Corey Lewandowski has been charged with simple battery after he is said to have forcefully grabbed the arm of a female journalist at a campaign event.
That sounds so third world. We thought America was more sophisticated and cultured. But all that changed when intellectually bankrupt Donald Trump decided he wanted to be America's next president.
Let's hope that does not happen - for the good of America and humanity at large.
We all know what happens when rubbish people become national leaders.
Sincerely,
Rajend Naidu

30/3/2016 08:00:54 am

There is a big difference between a well qualified academic and a good economist.

Biman is the former and not the latter

FMP

30/3/2016 11:13:45 pm

Josh and Pita

You see this is the problem with us I taukei. We simply do not have the adequacy to debate with forte literature. Do you verily think expletives gets your point across. It makes you look like a narrow minded dimwit who lacks the ability to auscultate others point of views.

Last years budget response speech was the worst in Fiji's history. It was well documented in the Newspapers. Questions about GDP, economic investment, military budgets, FBC budgets, opposition admin funding etc were simply not asked. Questioning School milk and Qarase's pension is not a mark of a good opposition leader who will keep the Government on their toes. Check your facts before you open your hypocrite Christian mouths.

The Opposition leader is way out of her depth. During the lead up to election when she had a live debate with Bainimarama, she was utterly devoured. Whenever a stringent questions was asked such as austerity, her go to answer was "we will discuss it when we get in". She appeared incapable of ever leading anything let alone a Country. Bainimarama may have flaws but on that debate he appeared like someone who knows what needs to be done. He looked and sounded like a strong leader.

Some of us don't necessarily agree with some things Bainimarama does but to cogitate on the idea of the Opposition leader leading us is daunting indeed.

The government have flaws just like all previous governments and its the oppositions job to question, debate and offer alternatives to them in Parliament. Constantly lamenting to the media about what they think is the problem and not offering any suggestions to a prospective solution is why they will never ever leading us again.

Ever wondered why majority of people both I taukei's and Indo-Fijians voted for Bainimarama and will vote for him again??? His foreign affairs policy is outstanding and has prevented Australia and New Zealand making a fool of us using means such as check book diplomacy like they did with all previous governments.

His education reform and small business support policy are the best we've ever seen. Most people go on about him borrowing a lot. Well every flipping countries borrows from China. During the 2008 economic crisis, USA, UK, Australia and New Zealand etc all borrowed. This is what independent countries do. They borrow and use that money to manage austerity and improve the economy and offer it as aids to other countries as a means of buying influences and favours. They've been doing it for a long time which is why they're wealthy.

With our previous governments we lived on aid money. Yes we were a charity case. So when Bainimarama borrowed so we can improve the economy and be independent, what did the oppositions who are out of their depth and their idiot supporters do. They complained, they prefer to live on aid money with strings attached than to actually stand up and do something to fix the economy and be independent. What a bunch of free loaders. No wonder majority of businesses and rich people are non I taukei. They are independent and try to make something of themselves. I taukei well we expect everything to be given for free. And the people with this mentality i.e oppositions and their supporters want to lead the country. And we've all seen the results of that.

During cyclone Winston the top 2 donours were Australia and China both giving more than 10 million. This is a result of Bainimarama's foreign policy. China has supported us like they had for the past 10 years. Australia did so in the hope of getting favours. As usual check book diplomacy. Don't get me wrong their humanitarian support is great but to think that they did it because they cared is a fools errand. Of they carer they would reduce their carbon emissions which affects climate change and probably caused the cyclones and will affect the sea level which in turn affects most pacific islands countries such Kiribati, Tuvalu, Nauru etc.

Cyclone Assistance

30/3/2016 11:50:23 pm

Australia and New Zealand came to Fiji's aid because they care about their Pacific Neighbours. Our people in thousands have migrated to their shores and enjoy the lifestyle that comes with it, be it health, education or housing.

Fiji after Winston was incapable of handling the situation and sought assistance and it was really an eye opener.

From the urban community to rural settlements and outer islands we all are indebted to Australia and New Zealand.

Rajend Naidu

31/3/2016 12:21:40 am

Editor,
In her letter in the smh ( 30/03) Margaret Raffle says " Big similarities between Turnbull and Packer - both lust for power, both aspire to great wealth, both have contempt for the unions and both are bullies..."
Does the similarities between this two remind you of the similarities between some other twos?
Sincerely,
Rajend Naidu

Tomasi

31/3/2016 03:14:26 am

No matter how irrational Khaiyum's decision is, it will be done according to his decision. There is nothing that will happen in Fiji without his approval. He is the brain and major spokesman of the FF dictatorship. Prof Biman and Ro Kepa can say all they like with sincerity and great care about the people of Fiji, Kai is the law and whatever he decides goes, even if it is against the law. Kai is above the law. He owns and controls Parliament, even the dentist speaker shakes in his presence. What a situation we have in the new Fiji. Parliament rubber stamps the decision of one person from one party. He runs Parliament, he runs the show, and he runs Fiji. That my friends is the reality, as Kai often likes to say, over and over again. But for how long will the people of Fiji watch this drama until they decide," It is time for a change". Until then, Bai and Kai will continue to play their game of thrones all over Fiji.

FMP

31/3/2016 10:37:37 am

Australia and New Zealand went to the UN attempting to block the Fiji Military from UN peace keeping duties. This provides employment for majority of Fiji's youth and adults. And is part of our economy.

They went to the IMF and successfully campaigned to prevent Fiji from borrowing. They instigated sanctions against Fiji which affected trades and international investments. They instigated Fiji's ban from the commonwealth which prevented Fiji from playing rugby sevens in the commonwealth games in 2010 and 2014. They instigated Fiji's ban from the Pacific Island forum which affected regional relationships.

They sanctioned Military families from travelling to their country which affected people who needed medical treatment. They abused the UN human rights policy with their Manu island Assylum policy. And their treatment of Aborigines whom they forcefully removed from their land to make way for coal companies. They refused to reduce their carbon emissions which affects climate change. They tried to destabilise Fiji's tourist economy by strongly advising their citizens not to visit Fiji. All of the above affected normal people.

The evidence against them is irrefutable. They do not care about us. They only do things if they can gain from it. According to their media and political commentators, Cyclone Winston could reset regional corporation. It's no surprise they rushed in to help. All their sanctions and underhand tactic backfired and now they're pretending to care.

If that was not enough their white papers had plans on how to invade Fiji which led to one of their blackhawk helicopters crashing on their own ship.

I don't trust them at all. At least China is upfront in their shady deals. Australia and New Zealand cover it up with so called Aids. And lets not forget the aid they used to give us had instructions on how and where it's used. China gives us loans and doesn't care how we use it.

Aid money means reliant on Australia and New Zealand. Loans from China means independent. And like any loans we have to pay it back just like how all those countries who loaned from China in the 2008 crisis have to. Difference though is unlike aid money, loans allows us to do what we want. So we can develop our infrastructures and hopefully our economy.

Obviously the current government are not perfect. Their spending is sometimes bordering on stupidity and corruption but they have opened the doors for our future leaders. It's a process and cannot be done overnight. Future government will need to be independent from old politics. They need to develop a system of check and balance. The future PM needs a chief of staff to manage his work load. He/She will employ speech writers, PR managers, media secretary etc. He will appoint his ministers and ambassadors based on qualifications, experience and ability. He will surround himself with advisers who are the best in their field. He will communicate more with the Public. Perhaps have a monthly PM questions time in the TV etc etc.

Osea link

31/3/2016 08:57:39 pm

FMP.

Well done for your analysis and it seems you personally lack the economic arguments you presented on loans,grants and aids.Fiji is in debt and yet you advocated that borrowing from China is the best thing for Fiji.The very people who benefit from the loans are the FFP who increased their salaries and perks and the workers who toiled everyday are paid peanuts and faced with the rising cost of living.China is selling garbage eg the items that arrived just before Wiston...they give in one hand and steal plenty from us at our own backyard illegal taking tons of Fish and killing Tuna Fishing in the Pacific Nations.When you loan you are not in control and the citizens are heavily burden with the repayments of Debts,a millstone on our necks and looking into the abyss.We have been in that situation since 2006.Plenty of promise from Bainimarama and we all know who benefits...the Army and his cohort together with his Business colleague who gave money to FFP.No country is perfect I would rather receive help from Australia and New Zealand with their aids and grants our good neighbours than from China ruled by Military Dictatorship similar to our FFP,as birds of the same feathers flock together.The Oppositon and its spokesperson is asking with regards to previous Budjets and yet the FFP puts up all barriers and ending up the 3 Federation Party being suspended from Parliament.Bainimarama claimed that his Government is the best so far since 1970 why is he so afraid to open up the Books to be Audited.One thing is definite we are in a mess with debts and yet FFP keep on borrowing and denying the views of the locals who know best the likes of Professors Biman Prasad and Wadan Narsey.Bainimarama and Khaiyum are not infavour of Civil Servants who are Professional they both prefer "Yes Man"who do their dirty work.The arrival of Winston is a very good test for FFP...they were quick to distribute goods given from others..Australia and New Zealand in the donors'list and so far nothing from their own pockets.For the 3NFP members honourable and bravo to your latest gestures.One will ask a question..do we have money to rebuild our Nation?.Well we have the answer from Khaiyum jetting off to India with his begging bowl to ask for help and lack of his own understanding that Indian has millions of poor people as compared to Fiji.The next jaunt to New Zealand which shows that he has no shame it is the good neighbour often codemned by Bainimarama.Yet they have been pouring millions in moneytary forms together with personels,professional of course,to help in rebuilding and leg up for those whose lives have been badly affected by Winston.Since 2006,I will ask how much progress has Fiji made in terms of loans from China as compared to previous Governments which utilise grants and aids to the betterment of the quality of life in Fiji.Without doubt Bainimarama's Army budget had risen each year and in return no money to boost the economy and instead payment for high salaries and to keep them happy forever by doing nothing at all.In conclusion the next 20 years we in Fiji will swim or sink as money is scarce or very difficult to obtain and borrowing from China will derail all hopes of economic development.Coup de tat is evil and since 1997 our children,youth and mothers are scarred for life and it got worse in 2006 onwards.I rest my case borrow from China or aid from Oz and NZ...Fiji needs to make the right choice as we move to the 21st Century.

Rajend Naidu

1/4/2016 11:53:51 pm

Editor,
Opposition Role in a Democracy.
The Supreme Court in South Africa has ordered President Jacob Zuma to repay part of the $16 million house refurbishing he did with public money under the pretext that it was for " security". ( SBS 1/04). The renovation included a swimming pool and amphitheatre !
When the Opposition initially raised this issue and criticised President Zuma saying this was tantamount to abuse of office and official corruption he ignored the criticism and refused to return the money.
Now the Opposition claim their legal challenge has vindicated them and also that the judges decision renders President Zuma's position untenable and they want him gone.
The Opposition has fulfilled its role of keeping a watch over the Government's use of public money and the credibility of its governance.
President Zuma has been found wanting on both scores.
Time will tell if the Opposition succeeds in evicting( impeaching) the President.
Sincerely,
Rajend Naidu

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NFP leader Biman Prasad: "Government’s decision to change the annual financial year to August 1-July 31 instead of the long-standing tradition of a financial year being January 1- December 31, is deceptive and illogical"

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