Fiji Introduces A Stayput Budget

From a Suva Correspondent Fiji s budget for 1963 is a “stayput” document with no changes in the main revenue producing heading of Customs and excise duty and income tax. The only handout will be a removal of duty on luxury items bought chiefly by tourists. The Financial Secretary, Mr H P Ritchie, later will introduce a motion into the Legislative Council setting out the items which can be bought duty-free.

MR. RITCHIE had budgeted for a recurrent budget deficit of £81,474. But he issued a stern warning about the dangers of deficit budgeting. He said the deficit could have been avoided by imposing additional taxation.

“But I consider that such a course would be incorrect at the present juncture,” he said.

The budget provides for recurrent expediture of £8,813,784, with four items over the £1,000,000 mark.

These are annual recurrent works at £1,344,845, education at £1,314,960, miscellaneous at £1,077,824 and medical at £1,015,291.

The capital budget of £3,108,078 makes the estimate of next year’s spending £11,921,862. Capital works at £1,168,134 is the biggest item in the capital budget.

Mr. Ritchie expects revenue for the recurrent budget to reach £8,732,310, of which Customs will provide £4,230,000, and internal revenue and licences £2,294,980. He

expects the capital budget revenue to be £3,027,536 with Colonial Development and Welfare funds at £1,458,836 and capital loans at £1,240,000 providing the bulk.

Commenting on the Government’s decision to remove duty on luxury items sought by tourists, which was made earlier than expected (see p. 77), The Fiji Times said: “Some tem porary reservations of praise are necessary until the list of goods affected reveals whether the matter has been approached boldly or half heartedly. If the full benefits are to be obtained, an aggressive boldness is needed on the part of all concerned.

“On an appointed day, the prices of the nominated goods should come down sharply and spectacularly in Fiji’s shops, and the full resources of the Fiji Visitors Bureau and any other source of publicity overseas should be applied "vigorously to spreading the news.

“The new system should be brought in as soon as possible, and certainly not later than January 1, 1963.”