Fiji’s Budget Under Scrutiny: Are Politicians Ignoring the Cost of Living Crisis?

The 2025–2026 Budget in Fiji is under fire for its lack of innovative solutions and emphasis on the rising cost of living, which many believe is exacerbating poverty among ordinary citizens. Opposition MP Hem Chand voiced these concerns during a recent parliamentary debate, stating that numerous Fijians he spoke to—students, vendors, factory workers, farmers, and senior citizens—expressed their disappointment with the government’s economic direction.

Chand criticized the government’s previous decision to raise the Value Added Tax (VAT) to 15%, claiming it has severely affected livelihoods. The recent reduction to 12.5% was described as insufficient and primarily a political move to appease public discontent. Chand emphasized that merely lowering VAT by 2.5% fails to address long-term economic issues, such as the persistent struggle against poverty affecting thousands of families.

He argued for a more meaningful approach to reduce VAT to 9%—the previous rate—claiming that this could provide genuine relief. Chand’s comments echo sentiments shared by other opposition members, including former Prime Minister Mahendra Chaudhry, who also characterized the government’s fiscal strategies as a mere “damage control” mechanism rather than a robust response to the economic challenges faced by the Fijian population.

Chaudhry particularly criticized the government’s actions of increasing MPs’ salaries while providing minimal increases in the national minimum wage, further highlighting the disparities in economic treatment between different groups. He called for targeted initiatives to support the most vulnerable in the society, suggesting a re-evaluation of tax policies and prioritizing the well-being and needs of ordinary citizens.

This ongoing discourse among lawmakers undoubtedly highlights the urgent need for reforms that truly address the struggles faced by many Fijians. Although the current atmosphere appears challenging, there is a beam of hope that continued dialogue and collective efforts can lead to more equitable and effective policies, fostering an economic environment that supports all citizens on their path to recovery and prosperity.