The Nadi Chamber of Commerce and Industry has described the 2025-2026 National Budget as “quite fair and inclusive.” Chamber president Lawrence Kumar expressed satisfaction with the budget’s strategic framework, which emerged from extensive public consultations with various community groups. He noted that it prioritizes addressing socio-economic challenges alongside maintaining macroeconomic stability.
A key highlight of the budget is the reduction of Value Added Tax (VAT) from 15% to 12.5%, a measure aimed at alleviating financial strain on families. Mr. Kumar emphasized the importance of careful fiscal management to avoid potential revenue losses, ensuring that the government’s operations remain viable despite these tax reductions.
The budget allocates a substantial $800 million to the Ministry of Public Works, including $388 million for the Fiji Road Authority and $284 million for the Water Authority, marking one of the largest infrastructure investments in recent history. Such spending is expected to foster economic growth and create employment opportunities.
In the health sector, funding will increase from $451.8 million to $611.6 million, which includes $10 million dedicated to a free medical scheme, signaling a commitment to improving health services for the populace. Additionally, the budget supports public transport by decreasing bus fares by 10% and increasing social benefits by 5%, providing further relief to citizens.
New initiatives for first-time homebuyers, including a grant of $30,000 for those with an annual income between $0 to $50,000 and another assistance for land purchases, aim to promote home ownership and support lower-income families. An announced interest payment of 8.75% for Fiji National Provident Fund (FNPF) members is anticipated to boost confidence among citizens.
While the government projects a budget deficit of $886 million against expected expenditures of $4.8 billion, Mr. Kumar acknowledged that this bold approach is necessary given the global crisis and rising costs. He emphasized the government’s commitment to supporting the average income earner and addressing the economic challenges facing the citizens of Fiji.
This budget not only reflects a thoughtful response to current economic challenges but also embodies a hopeful vision for the future, aiming to enhance the quality of life for all Fijians through community consultation and targeted initiatives. By prioritizing critical sectors and infrastructure, the government is positioning Fiji for sustainable growth despite the uncertainties in the global economy.
Leave a comment