In: Accounting
Question 5: Role of Fiji Government
Ans:
A. Roles of Fiji Government:
1. The state in Fiji has the social responsibility to look after the welfare of its citizens. Importantly, the government needs to address issues relating to social justice, poverty alleviation, housing, health, education and human rights. In attempt to fulfil its responsibilities, the government has established Ministries, which assist in service delivery. The Ministries that assist in service delivery include Ministry of Heath, Ministry of Education, Department of Social Welfare and Poverty Alleviation, Ministry of Women etc.
2. Education- The Ministry of Education plays a very essential role in providing a better education system in Fiji. Some of the core functions of Ministry of Education include:
3. Health- Government is the main provider of health services in Fiji. These health services are primarily funded through tax revenues. Ministry of Health plays an important role in providing health services in Fiji. Some of the core functions of Ministry of Health include:
4. Public utilities (water, energy and telecom), works and transport- Some of the core functions of the Ministry of Public Utilities (water, energy and telecommunications), Works and Transport include:
B. Following are some of the meaures I have discussed that have been taken by Fiji Government to combat the isues experience from Covid-19:
1. the Fiji Government has announced a Covid-19 Stimulus package of $1 billion together with FNPF
2. Effective from April 1,2020 to December 31, 2020, employee and employer FNPF contribution have been reduced from 8% and 10% to 5%.
3. Fijian workers in the hospitality sector who have lost their jobs since 1 February 2020 can access an initial $1,000 from their FNPF accounts. Additional funds are also considered.
4. Employees in the Lautoka confined area who have been placed on leave without pay can also have access to an initial $500 from their FNPF accounts.
5. Busines affected by the Covid-19 will get Disaster Rehabilitation and Containment Facility.
6. Additional $40 million to enhance health system’s response capacity, $20 million to Education and Social Welfare, $1 million allocated towards Ministry of Agriculture to bolster Fiji’s food security, $5 million to be added to the small and medium enterprises credit guarantee scheme.
7. Monthly travel allowance of the pensioners have been reduced to $20 from $40.
8. Authorities in Fiji have introduced a range of measures to mitigate the impact of COVID-19, including Inome Tax administration, Income Tax, Customs Act, Valu Added Tax, Stamp duty, etc.
C. The economic consequences of the COVID-19 pandemic call for emergency responses to keep the economy sailing and prevening pople ro lose their jobs and incomes. Most of the measures expected at present are macroeconomic in nature, focussing largely on the provision of emergency liquidity. These measures all proceed from the urgent need to prevent a catastrophic economic collapse that would have dire human, social, and health consequences. While the trade impact of these measures may not be a prime concern of governments at present, experience from the crisis of 2008-09 suggests that poorly designed stimulus packages can have negative, long-lasting consequences for global trade and national welfare. care should also be taken to ensure that today’s stimulus does not sow the seeds of enduring trade distortions. Emphasis could more effectively be placed on measures that benefit smaller businesses, including those operating in services sectors, as well as on investments in strengthening broader healthcare and social safety. Governments could reap additional benefits by aiming for support measures that achieve “double dividends” and help ensure that longer-term policy objectives are not sacrificed for short term economic stimulus. Climate change remains a concern even as countries struggle to contain the COVID-19 pandemic and its economic and social consequences. To the extent possible, efforts should be made to align stimulus measures with climate and environmental objectives more widely.