THE 2025–2026 Budget lacks innovation and fails to address the rising cost of living pushing ordinary Fijians further into poverty, says Opposition MP Hem Chand.
While contributing to the Budget debate in Parliament yesterday, Mr Chand said many people across the country had expressed disappointment with the Coalition Government’s economic strategy.
“Since the budget announcement, I have engaged with countless Fijians from all walks of life — farmers, teachers, market vendors, factory workers, taxi drivers, senior citizens, residents from my area, and residents from our most rural and remote areas, including our outer islands,” he said.
“The overwhelming sentiment is one of deep disappointment and profound concern, particularly regarding food costs.
“They universally echo the sentiment that this budget lacks vision, proper planning, and tragically, they fear it will inflict further hardship on our children in the years to come.”
He said the 15 per cent VAT imposed in 2023 had caused significant damage to livelihoods over the last two years.
“The Coalition Government’s decision to initially raise VAT to 15 per cent in its first Budget, was ‘not well thought out’ that triggered a cost-of-living crisis.
“To reduce VAT now to 12.5 per cent is to please the Fijians, but it is not so easy to convince them because they have suffered badly in last two and half years.”
Mr Chand said the 2.5 per cent reduction offered little relief.
“It does nothing to tackle the long-term challenges such as poverty which is almost the same unimaginative policy that will deny Fijians meaningful progress and prosperity.
“Six per cent reduction and bringing it back to what it was in 2022, could have brought some relief but unfortunately government has blatantly disregarded this.”
