The 2026-2027 national budget should focus on key areas such as supporting businesses and economic growth, investing in productivity and job creation, and providing targeted assistance to families facing cost-of-living pressures.
These are the views of Fiji National University acting head of Department of Economic Development and Sustainable Studies Ashwin Deo, who said the economy was already faced with significant challenges, including rising fuel prices, increasing living costs and slower economic growth.
He said the recent fuel crisis had highlighted the need for greater investment in renewable energy and reducing Fiji’s dependence on imported fuel.
While tourism remains Fiji’s primary foreign exchange earner, I strongly believe that greater investment in agriculture, fisheries, digital services, and other export industries will help build a more resilient economy,” Mr Deo said in a statement yesterday.
“The future is not tourism versus diversification; it is tourism plus diversification.”
Mr Deo also advised that while supporting economic growth and vulnerable households remained important, the Government must also ensure that today’s borrowing did not become an unsustainable burden on future generations.
He said careful debt management would be essential in achieving that balance.
“Ultimately, the challenge for policymakers is to balance economic growth, social support, and fiscal responsibility to ensure a stronger and more sustainable future for Fiji.”
He said government policy should strike a balance between the objectives of allocation, distribution, and stabilisation, while maintaining fiscal sustainability.
Mr Deo said economic theory suggested that during periods of uncertainty, governments should support growth through targeted investments while also protecting vulnerable households.
“However, spending must be carefully managed given Fiji’s elevated debt, which now exceeds $11 billion and represents more than 80 per cent of GDP.”
