The 2025–2026 budget in Fiji has faced criticism for its perceived failure to deliver innovative solutions and adequately address the escalating cost of living, which the Opposition claims is driving many ordinary Fijians deeper into poverty. Opposition MP Hem Chand articulated these concerns during a recent parliamentary debate, stating that numerous citizens—including farmers, teachers, market vendors, and factory workers—have expressed their disappointment in the government’s economic strategy.
Chand noted that since the budget’s announcement, the feedback from constituents reflects deep disappointment, particularly regarding the rising costs of essential food items. He emphasized the troubling sentiment among Fijians, who fear that the current economic measures lack vision and will lead to further hardships for future generations. The Opposition MP criticized the government’s previous decision to increase the Value Added Tax (VAT) to 15%, claiming it has inflicted significant damage on the livelihoods of many families over the last two years. Although the recent reduction of VAT to 12.5% has been seen as an attempt to appease public dissent, Chand argued that this gesture provides minimal relief for the long-term challenges faced by low-income communities.
Chand advocated for a more substantial reduction of the VAT back to 9%, the previous rate, asserting that such a measure could create genuine relief for those struggling with the essence of affordability. He called the government’s approach unimaginative, stating that it continues to perpetuate poverty instead of delivering meaningful progress.
These sentiments resonate with previous discussions by other lawmakers, including former Prime Minister Mahendra Chaudhry and Independent MP Virendra Lal, who have criticized the government’s fiscal strategies. Chaudhry has pointed out that the VAT increase has not only heightened inflation but also disproportionately affected those on lower incomes. His call for reform touches upon the broader conversation about balancing economic growth with social equity.
While the criticisms highlight significant challenges for the Fijian government, there is a positive aspect to this ongoing discourse. The dialogues among lawmakers can pave the way for constructive policy changes aimed at alleviating economic burdens on citizens. As public voices demand more equitable economic reforms, there is hope for a future where policies prioritize the needs of all Fijians, fostering an economic environment that could lead to lasting prosperity and recovery.
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