Alvick Is a Liar and Sayed-Khaiyum Was a Disaster, Says Prasad

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has hit back strongly at Hon. Alvick Maharaj and former Attorney-General Aiyaz Sayed-Khaiyum, calling out what he described as “lies” and “economic hypocrisy” from both opposition figures.

In a detailed statement released on May 8, Prasad defended the Government’s economic management and inflation response, pointing out that the April inflation rate was officially negative.

“Inflation statistics are released by the Fiji Bureau of Statistics, and it is a fact that inflation was negative in April. A negative inflation rate means that overall prices have declined compared to a year ago—there is no debate about this,” Prasad stated.

He explained that the Government had welcomed the decline, which was aided by falling global fuel and food prices. According to the Finance Minister, earlier policy measures—such as zero-rated VAT on 22 essential items, increases in social welfare, the $650 million TELS debt write-off, a national minimum wage increase to $5 an hour, and an $85 million public sector wage rise—have supported thousands of Fijian families.

Responding to Maharaj’s claims that the Government had misused the additional VAT revenue, Prasad said: “His claim is absurd. It is precisely through this additional funding that we have been able to finance various income-support measures for our people and increase allocations to health, water, roads, public asset maintenance, agriculture, and other critical sectors.”

Prasad didn’t mince words in pointing to the record of the former FijiFirst Government.

“It was during his Government’s tenure that public finances were abused to feed cronies and political party supporters. The pilfering of hard-earned taxpayer money under their watch deprived our people of essential services and left us with the disaster of a dilapidated health sector, unreliable water services, and crumbling public infrastructure.”

He clarified the current VAT structure, noting that during FijiFirst’s time in power, VAT was already set at 15 percent with three tiers: zero, 9 percent, and 15 percent.

“What we have done is move items that were at 9 percent to 15 percent. Items already at 15 percent remain unchanged, and those at zero percent continue to be zero-rated—with the additional inclusion of prescribed medicines, bringing the total to 22 essential items,” he said.

Prasad also pointed out that revenue measures have contributed to reducing national debt.

“In addition to funding these critical expenditure initiatives, the revenue measures have helped reduce our debt level from over 90 percent to around 78 percent of GDP. This significant reduction in debt has enabled us to rebuild fiscal space to mitigate major external shocks and fiscal disruptions.”

Taking aim at Maharaj’s specific example, he said: “His calculation that VAT would be $75 on a $500 grocery basket is amateurish and a lie. There are 22 zero-rated items, and if the entire basket consists of these items, the VAT would be zero. If half of the basket is zero-rated, the VAT would be $37.50. At the same time, vulnerable households continue to receive various forms of assistance and social wages funded through the public purse.”

Prasad also rejected Sayed-Khaiyum’s suggestion that prices had increased under the Coalition.

“His claim doesn’t take away his disastrous record during his tenure as Finance Minister from 2014 to 2022, when overall prices increased by over 17 percent, and food prices rose by a staggering 30 percent. It was his policies and dictatorial leadership that ruined this nation—driving up public debt, crippling public infrastructure, hollowing out state institutions, damaging the economy, and leaving a nation that lived in fear.”

“Unfortunately, people like Hon Maharaj and Aiyaz continue to lie thinking that it will improve their political fortunes. People who bankrupted their own political party and ran away from parliament should not lecture others about how to manage the country’s economic policies.”

He concluded by reaffirming the Government’s record: “The Coalition Government has been honest, transparent and open about its economic policies. This has created confidence and this is reflected in increased investment over the last two years.”