The 2025-26 National Budget has been announced, promising significant financial relief to boost household incomes and living standards. Acting Prime Minister and Minister for Finance, Prof Biman Prasad, highlighted that the Coalition Government’s third budget dedicates a total of $800 million to alleviate cost-of-living pressures. Key initiatives in this budget include an increase in the minimum wage from $4 in 2023 to $5 by April 2025, a 5% rise in social welfare allowances, and a further 10% reduction in bus fares. Additional support for farmers through guaranteed prices and subsidies for key crops is also part of the plan.
This approach builds on previous budgets, which have been directed towards enhancing social welfare and introducing targeted subsidies. The strategic financial measures are reinforced by statistics from the Reserve Bank, showing positive signs such as seven consecutive months of falling or negative inflation. Prof Prasad stressed that the reductions in duty and VAT are intended to directly benefit the public, and a task force comprising the Fijian Competition and Consumer Commission, the FRCS, and the Finance Ministry, ensures these changes are accurately reflected in household expenses.
Efforts from two-and-a-half years of fiscal reforms, wage hikes, and increased social spending are being termed a “success story,” balancing economic recovery with relief for the citizens. These measures are part of a comprehensive strategy to support Fijians amid external economic challenges, fostering a more resilient and inclusive economy.
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