A number of new programmes have been announced in the 2010 National Budget which are expected to benefit both the business community and the poor in the new year.

It is clear that government is now focusing on targeted assistance for low income earners and at the same time to introduce new incentives that will increase business activity, investment and growth.

A lot of focus has been placed on poverty alleviation with new programmes.

While focusing on this, Prime Minister and Finance Minister Commodore Voreqe Bainimarama has announced a monthly Food Voucher program for the people who will be registered under the Family Assistance Program.

It has also been revealed that the Free School Bus Fare Program will continue in 2010 but it will be based on an income test level.

The government has also announced a decrease in fiscal duty for 2010 for a number of items.

A number of items have now been made duty free.

Fiscal duty on perfume, cosmetics, pre-shaving or after shaving preparation, cameras, sunglasses, watches, laptops, IPods, MP3 and MP4 players and jewellery will be reduced from 15 percent to 0 percent.

Duty has also been reduced from 5 to zero percent for video and electronic games and USB wireless modems.

This comes into effect from the 1st of January 2010.

Zero rating of VAT for locally produced eggs has been removed while the government has imposed 5 cents per litre excise duty on all carbonated soft drinks.

Good news for companies as the government has also decreased the Corporate Tax from 29 percent to 28 percent.

And it is even better news for those companies listed under the South Pacific Stock Exchange as these companies will be subject to a reduced corporate tax rate of 20 percent next year, provided the companies have more than 40 percent local equity shareholding.

The government has also announced that it will continue funding for HART, squatter upgrade, and resettlement programme in the Housing Authority and Public Rental Board.

At the same time a new Housing Assistance Grant Scheme for families will be introduced for those that cannot meet the bank deposit to take a first home loan but may be in a position to make the loan repayments.

There have been no changes in the resident Individual Income tax rates.

If you earning $15,000 and below, you will not be subjected to pay any tax.

Those who are earning $15,001 to $15,600 they will be paying 25 percent of excess over $15,000.

People earning between $15,601 and $22,000 will have to pay $150 plus 31 percent excess over $15,600.

All those earning more than $22,001 and above will have to pay $2,134 plus 31 percent of excess over $22,000.

A number of incentives also for the tourism industry.

A new Tourist VAT Refund Scheme will be implemented on 1st February next year to provide departing tourists a refund of 12.5 percent VAT on their purchase above $500.

This is to encourage tourist spending and at the same time boosting business.

Commodore Bainimarama has also announced that the shopping and liquor trading hours will be extended in some centres of Fiji.

This will result after the zoning of the centres.

Bainimarama said the government will continue with tax free region incentives.

The Education Ministry has received the largest allocation for 2010 with Finance Minister Commodore Voreqe Bainimarama giving a budget allocation of $312.7 million.

From this allocation, $37.6 million goes to USP, $14 million for FIT, $3.6 million to the University of Fiji while $6.5 million to the newly established National University of Fiji as government looks at creating better employment opportunities in the long run.

The Health Ministry received a decrease in their allocation and will get $148 million for 2010.

In making this announcement, Bainimarama reveals that the allocation will be used not only for the upgrade of major hospitals and health centres around the country but will also look at recruiting additional doctors and nurses as well as providing access to modern technology and equip nursing stations.

The Fiji Police Force received an increased budget of $78.4 million for 2010 which will see the establishment of 470 more established posts bringing the total number of Police Officers to 3097 for 2010.

Meanwhile, the Fiji Military Forces received a decreased allocation of $92.5 million for 2010 as a result of a decrease in allocation for missions to Iraq and Sinai.

Looking at the Ministry of Transports and Works, they received $141.7 million for major plans like the upgrades Vunidawa Road, the Ratu Dovi and Kings Road extensions as well as upgrading rural roads and the Suva-Nausori corridor.

The Social Welfare Ministry received an increased allocation from $27.4 million this year to $33.9 million in 2010.

This will see $15 million allocated to the Family Assistance Scheme, $4.4 million for Care and Protection and a total $7.4 million has been set aside next year for governments Food Voucher Program.

Under the allocations for the Housing Ministry.

$1.5 million will be used for the Squatter resettlement projects while the Public rental Board is allocated $1 million for its housing scheme.

Experts from Singapore are expected in the country soon to carry out a review of the Fiji National Provident Fund to ensure the superannuation fund returns to its core functions and remains viable in the long run.

While announcing the 2010 National Budget, Prime Minister and Minister for Finance Commodore Voreqe Bainimarama revealed that a number of agencies are targeted for reform and review next year which includes the FNPF, FEA and the Fiji Sugar Cooperation.

Permanent Secretary for Finance John Prasad said the review is needed to get FNPF back on track.

Meanwhile, also in the 2010 Budget, government has allocated $3 million for agricultural projects aimed at reducing Fiji's growing reliance on imports, particularly rice, livestock products, fruits and vegetables.

This is also expected to improve current trade imbalances.

According to the Agriculture Ministry, food imports have increased significantly over the years, from $355.5 million in 2005 to $520 million in 2008.

Government has also revealed that they have planned to intensify the Export Promotion Programme next year.

To facilitate this, a further $2 million has been allocated next year for the further development of products geared towards export, such as papaya, taro, cassava, ginger, pulses and vegetables.

The government will have to fork out an estimated $813 million in total to service its external and internal debts by 2011.

This includes a loan secured through Global Bonds in 2006 amounting to US$150 million and the bond matures in 2011 which will require a full payment of the amount by 2011, thus exerting pressure on governments external debt financing.

According to forecasts provided in the 2010 Budget Supplement, government is expected to pay around $516 million to service its external and domestic debts this year.

In 2010, it is forecast that government will have to pay around $502 million, however come 2011, government will have to pay around $390 million for its external debt service and a total of around $813 million to service overall external and internal debts.

Permanent Secretary for Finance John Prasad said they are exploring a number of options to ensure these debts are paid off on time.

Prasad stressed that these debts have been inherited by the current government.

The Fiji Independent Commission Against Corruption has had their budget increased from $5 million to $8.2 million.

Justice and Anti-Corruption Minister Aiyaz Sayed-Khaiyum said the increase is to cater mainly for specialized staffing issues as well as tackling the increasing number of complaints that are coming in.

Meanwhile, the government has allocated $3 million in 2010 for agricultural projects aimed at reducing Fiji's growing reliance on imports.

Primary Industries Minister Joketani Cokanasiga said they will continue to work with the different sectors especially regarding food crops and beef production.

Health Minister Dr Neil Sharma said they will be concentrating on improving capital structure of hospitals.

Fiji Chamber of Commerce President Swani Maharaj said with next year's budget, low income earners will benefit.

The 2010 National Budget government announced yesterday sees a decrease in fiscal duty for a number of items.

A number of items have now been made duty free.

Fiscal duty on perfume, cosmetics, pre-shaving or after shaving preparation, cameras, television cameras, watches, sunglasses, watches, laptops, IPods, MP3 and MP4 players, and jewelry will be reduced from 15 percent to 0 percent.

Duty has also been reduced from 5 to 0 percent for video and electronic games and USB wireless modems.

The duty rates and other changes relating to the Customs Tariff Act shall apply to goods arriving for the first time in Fiji by ship or aircraft, after midnight, 26th November, 2009.

The mentioned time and date also applies to goods relating to changes to the Excise Act.

Zero rating of VAT for locally produced eggs has been removed while the government has imposed 5 cents per litre excise duty on all carbonated soft drinks.

The Export Duty Rate for fresh, chilled or frozen fish and timber has been reduced from 3 percent to zero.

Good news for companies as the government has also decreased the Corporate Tax from 29 percent to 28 percent.

It is even better news for those companies listed under the South Pacific Stock Exchange as these companies will be subject to a reduced corporate tax rate of 20 percent next year, provided the companies have more than 40 percent local equity shareholding.

The government has also announced that it will continue funding for HART, squatter upgrade, and resettlement programme in the Housing Authority and Public Rental Board.

At the same time, a new Housing Assistance Grant Scheme for families will be introduced for those that cannot meet the bank deposit to take a first home loan but may be in a position to make the loan repayments.

The Fiji Islands Revenue and Customs Authority is putting in place the mechanisms to implement the Tourist VAT Refund Scheme and shops wanting to be part of the scheme will have to apply for a license to do so.

At the post budget press conference, FIRCA CEO Jitoko Tikolevu revealed that initially the scheme will only apply to visitors who use the Nadi Airport or the Suva Wharf as a point of entry into the country.

He said the Suva wharf has been chosen as 60 cruiseliners are expected to come to Suva next year.

Tikolevu said shops wanting to be part of the scheme will have to pay an annual license fee of $2,500 and will apply to tourists who spend $500 or above from a single shop and it can be up to three purchases a day.

The Women, Social Welfare and Poverty Alleviation Minister Dr Jiko Luveni said the Food Voucher Program of $30 a month for families will be a welcome relief to many families under the Family Assistance Scheme.

Businessman and Flour Mills of Fiji Chairman Hari Punja said by way of investment, businesses will be satisfied.

Fiji Retailers Association President Himmat Lodhia said the duty reduction is good for consumers.

The Lands Minister Netani Sukanaivalu said government has put together a taskforce, to see to the utilization of idle land.

Fiji Hoteliers Association President Dixon Seeto said this kind of budget is needed to put us back on to the right footing.

The Public Service Commission Chairman Josefa Serulagilagi said they will now be able to forge ahead with their planned reforms.

Provincial Development Permanent Secretary Manasa Vaniqi said the announcement to purchase more vessels for outer islands will have a ripple effect on development for those living in rural areas and outer areas.

Commissioner Northern Colonel Inia Seruiratu said with more incentives being announced for the Look North Policy, he is optimistic things will improve in 2010.

Government stands to lose around $7 million through the reduction of fiscal duty on various items and zero duty on the selected items.

However, FIRCA CEO Jitoko Tikolevu stressed that through the revenue measures announced, government targets to rake in $28 million and that the zero duty is not something new.

The 2010 National Budget has just been announced with the various Ministries receiving decreased allocations for next year.

Our reporter Roneel Lal with more on the allocations to the various Government Ministries.

Once again:

The Education Ministry received the largest budget allocation of $312.7 million, which will see $37.6million go to USP, $14 million for FIT, $3.6 million to the University of Fiji while $6.5 million to the newly established National University of Fiji.

The Health Ministry received a decrease in their allocation for 2010 where they received $148 million for 2010 whereas they had received $149 million last year.

The Fiji Police Force received an increased budget from $76.3 million in 2009 to $78.4 million for next year to see the establishment of 3097 posts in the new year.

Meanwhile, the Fiji Military Forces received a decreased allocation of $92.5 million for 2010 compared to $98.8 million for 2009.

This is a result of a decrease in allocation for missions to Iraq and Sinai.

Looking at the Ministry of Transport and Works, they received $141.7 million for major plans like the upgrades of the Vunidawa Road, the Ratu Dovi and Kings Road as well as upgrading rural roads and the Suva-Nausori corridor.

The Public Utilities Ministry received a decreased budget of $124 million compared to $127 million while the Tourism Ministry received $23.5 million in their 2010 allocation.

There is a lot of positive reaction to the announcement of the 2010 National Budget announced this morning.

Education Minister Filipe Bole said the free school bus fare program continuing next year is a good initiative, as a lot of school children who are really in need will benefit.

Fiji Trade and Investment Board Chief Executive Annie Rogers said the budget will definitely see an increase in investment activity.

Housing Authority Chief Executive Officer Alipate Naiorosui said the housing grant will encourage more ownership of houses as the government announced an additional ten million dollars for housing.

Fiji Tourism Chairman Patrick Wong said the most important aspect of this budget is continuity especially the Tourism Vat Refund Scheme which will go a long way with their marketing strategies already in place.

Stay with us for continuous coverage of the 2010 National Budget throughout today.