THE People’s Coalition Government’s third national budget will focus on strengthening infrastructure, supporting the vulnerable and driving private sector confidence amid growing global uncertainty, says Deputy Prime Minister and Minister for Finance Professor Biman Prasad.
Speaking to The Fiji Times ahead of today’s budget announcement, Prof Prasad said the 2025-2026 National Budget would build on the groundwork laid in the first two budgets delivered by the Coalition Government since coming to power in 2022.
“The third budget will build on the strategic priorities that we set out to achieve in the first two budgets,” he said.
“That includes addressing the huge deficit in the infrastructure, including health, education, water and roads.”
While acknowledging progress over the past two and a half years, Prof Prasad stressed that “a lot more work remains to be done, and the third budget will build on it”.
He highlighted three strategic pillars guiding the budget: fixing critical infrastructure gaps, supporting vulnerable communities and stabilising public finances to promote investment and growth.
“Second strategic priority when we came into government was to address the gap in the support of our most vulnerable.
“We increased social welfare allowances in the first budget and other measures such as back-to-school, reduction in duties, raising income through raising the minimum wage to $5, providing income support and subsidies to farmers to raise production and income in the resource sectors to address the cost-of-living concerns.”
Prof Prasad said revenue and tax reforms had improved investor confidence and contributed to a rebound in growth.
“We are very pleased with the level of confidence and private sector investment in the last two and a half years and the resulting levels of economic growth and employment.”
On the economic front, the minister noted that inflation had dropped significantly.
“We have also seen inflation dropping to 1.3 per cent in 2024 and stood at 0.1 per cent in May 2025 compared to 5.1 per cent in 2023. This is good news for the country.”
Prof Prasad also noted that the 2025-2026 National Budget is being developed under challenging global conditions.
“Additionally, the budget is being framed in the context of deteriorating global economic conditions as a result of conflicts in the Middle East and the tariff war,” he said.
“This has created global uncertainty and could have adverse impact on small economies like ours and so the budget will be framed in that context, to cushion the impact on our economy and its people.”
Prof Prasad pointed to the Government’s efforts to promote dialogue around policy-making.
“We are very pleased as a government that we have provided an open political environment where economic governance and policy is debated.
“Our National Development Plan lays the short- and long-term vision for Fiji and the third budget is also being framed with that foundation.”
The Finance Minister also acknowledged the input from citizens during pre-budget consultations.
“I want to thank everyone who shared their suggestions and ideas during the budget consultation, and we appreciate that very much.
“The third budget of the Coalition Government will build further confidence amongst our people and investors.”
