FIJI’S Coalition Government has tabled a $4.87 billion spending plan which has been described as “responsible” and “realistic” as the country confronts soaring public debt, a global fuel crisis, and rising cost of living.
Presenting the 2026-2027 Budget, Minister of Finance Esrom Immanuel outlined a fiscal landscape marked by significant challenges.
Public debt has tripled over the past decade from approximately $4 billion to $ 12 billion, with the debt-to-GDP ratio now approaching 85 per cent. The government projects a fiscal deficit of $1.07 billion, or seven per cent of GDP, attributed largely to the impact of the global fuel crisis.
“There will be no populist budget,” Immanuel told Parliament.
“This is not built on short-term promises a country cannot afford.”
The Budget maintains total expenditure at $4.87 billion, a marginal increase of less than one per cent, while imposing strict cost-containment measures. Operational expenditure across government will be reduced by 10 per cent, vacant position funding cut by 50 per cent, and ministerial and parliamentary salaries reduced by 20 per cent.
The government has committed $876 million to capital projects, aiming to shift spending from operations to infrastructure development. Major initiatives include a $500 million health sector transformation project establishing Fiji’s first radiotherapy centre at CWM Hospital, a $300 million water security project to double wastewater capacity, and major bridge replacements valued at $400 million.
While fiscal pressures are mounting, the Budget aims to keep in place social support measures.
The government will continue zero-rated VAT on 22 essential items, provide $200 back-to-school assistance, and maintain welfare payments for over 180,000 Fijians. Transport subsidies will absorb the full 22.5 per cent bus fare increase, benefiting 350,000 daily commuters.
The government also announced measures to support Fiji Airways, including a planned $200 million guarantee and a temporary five per cent tourism services tax directed to the national carrier.
Economic growth for 2026 has been revised down to 1.5 per cent due to the global fuel crisis, but the minister expressed confidence in private sector-led recovery, pointing to 254 active investment projects valued at $8.9 billion.
The Budget includes $23.2 million for general election preparations, as Fiji approaches another electoral cycle. Parliament will begin debate on the Bill on July 13.
