Chaudhry Slams Fiji Government’s Budget as a “Token Reaction” to Crisis

Mahendra Chaudhry, the leader of the Fiji Labour Party, has sharply criticized the Coalition Government’s decision to reduce the Value Added Tax (VAT) to 12.5%, calling it a mere “token reaction” to widespread public discontent. He described the 2025-2026 budget as primarily a “damage control” effort to mitigate the negative impact of previous budgets which have caused significant suffering among the populace.

Chaudhry argued that this new rate is insufficient to tackle the rising cost of living as businesses are likely to retain their profit margins rather than passing on price reductions to consumers. Instead, he contends that a drop in VAT to at least 10% would make a meaningful difference in addressing economic hardships faced by many Fijians.

In addition, he expressed concern that the announced 5% increase in welfare benefits will not compensate for the burgeoning cost of living, especially with anticipated increases in global inflation over the coming year. Chaudhry also criticized the government’s budget deficit of $886 million, warning it could lead Fiji into unmanageable debt levels as fiscal deficits have increased significantly under the Coalition’s management.

Chaudhry highlighted that the government’s expansionary measures seemed superficial, often appearing grand but lacking genuine implementation due to ongoing workforce shortages and a lack of capacity to deliver on promised projects. He emphasized that the Coalition has overlooked critical constraints affecting budgetary effectiveness.

The current criticisms reflect a wider sentiment regarding the government’s handling of economic policy and the urgent need for a reassessment of fiscal strategies. With continued pressure from public voices like Chaudhry’s, there remains an opportunity for constructive dialogue to emerge, which could lead to more responsible governance and policies that prioritize the welfare of everyday Fijians.

This context also emphasizes the significance of transparency and accountability in government decisions, suggesting that by listening to public concerns, the government could rebuild trust and foster a more positive economic environment for all.