The upcoming national budget for 2025-2026 in Fiji aims to assist citizens in dealing with increased living costs while simultaneously preparing the economy for potential global challenges. Deputy Prime Minister and Finance Minister, Professor Biman Prasad, emphasized that prior budgets have been built on a foundation of responsible economic governance, focusing on tax reforms and revenue generation.
Prasad indicated that this forthcoming budget would provide clarity and assurance to the populace. He acknowledged that while various price surges stem from factors outside government control, recent initiatives, including the removal of VAT on 22 essential items and reductions in certain import duties, have brought some relief to the cost of living for Fijians.
Furthermore, the minister highlighted the challenges posed by ongoing global trade tensions, particularly the tariff disputes among major economies that could indirectly impact Fiji’s key sectors, including tourism and remittances. He articulated that while immediate effects of these tariffs might not be overtly visible, continued global economic volatility could lead to decreased disposable income in major source countries for tourism, ultimately affecting Fiji.
As discussions for the new budget advance, various ministries are providing input on their allocation needs, with the Finance Ministry collecting feedback to guide the budgetary process. With the Fijian economy projected to grow by 3% this year, Prasad proposed that this positioning allows the nation to better shield itself from potential global economic downturns.
These efforts align closely with the government’s commitment to transparency and community engagement, as seen in previous initiatives that fostered budget consultations to include citizens’ insights into economic planning. Such collaborative measures represent a hopeful trend toward responsive governance that aims to uplift all Fijians.
Overall, by carefully addressing social needs through strategic financial planning and community involvement, the government aspires to create a balanced approach that supports economic stability and growth despite external pressures.
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