Fiji’s upcoming budget, set to be delivered on Friday, is expected to see an increase in government expenditure and a consequent rise in the budget deficit. Deputy Prime Minister and Minister of Finance, Professor Biman Prasad, acknowledged that while the debt-to-GDP ratio might rise slightly, the overall economic situation will still be an improvement compared to the circumstances the current coalition government inherited.
Prasad emphasized the need for increased spending as a proactive measure to counteract potential adverse effects from the global economic slowdown. He confirmed that the budget’s focus would be on supporting citizens, stating, “We would be doing a lot more in the next budget in terms of expenditure, in terms of looking after our people.”
When addressing the likelihood of reduced food prices, Prasad noted the challenge posed by increased freight costs on imported goods, stating that despite previous budgets implementing measures such as zero VAT on certain items, rising global prices have made it difficult to control costs. Nevertheless, he pointed out that the overall inflation rate is expected to decline this year, highlighting a positive trend that should benefit Fijians.
This budget is not just a reactionary strategy—it reflects a longer-term fiscal plan aimed at promoting economic resilience and growth, as Prasad has consistently communicated. The government seeks to assure citizens that while immediate challenges exist, the strategic investments and support measures in place are designed to bolster the economy in the long run.
As seen in previous initiatives within the Fijian government, including substantial funds allocated for public welfare and support systems, there is hope for a continued commitment to improving the quality of life for its people. With planned expenditures aimed at assisting various sectors, the government’s approach signals optimism for economic stability amid global uncertainties.
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