Fiji will run a projected budget deficit of $886 million, equivalent to 6.0 per cent of GDP, as Government unveils a $4.8 billion expansionary national budget aimed at boosting economic resilience and easing the cost of living.
Announcing the 2025–2026 Budget in Parliament today, Deputy Prime Minister and Minister for Finance Professor Biman Prasad said the higher deficit was a “deliberate” and “bold” measure to protect Fijians against global shocks.
“This expansionary fiscal stance is deliberate. It reflects the bold decisions we are making today to protect our people, make our economy more resilient and continue to build our much-needed infrastructure and productive capacity,” Prof Prasad said.
The Government expects total revenue of $3.9 billion. Public debt will increase to $11.7 billion but remain below 80 per cent of GDP. down from over 90 per cent when the Coalition took office.
To ease pressure on households, VAT will drop from 15 per cent to 12.5 per cent from August, delivering $250 million in tax relief. Zero-rated VAT on 22 essential items will remain, taking total relief to $500 million.
Civil servants will receive a further 3 per cent pay rise, and all social welfare recipients and Government pensioners will see a 5 per cent boost in monthly allowances.
“This budget is our national response to extraordinary circumstances,” Prof Prasad said. “We are putting people first while ensuring long-term stability.”
