THE Government may need to introduce additional cost of living assistance if revenue improves, with more Fijians now struggling financially as the fuel crisis worsens, says economist and University of the South Pacific lecturer Dr Janesh Sami.
Speaking at the National Budget Forum 2026 in Suva on Wednesday, Dr Sami said while the 2026-2027 National Budget had retained many of the relief measures introduced the previous year, the economic environment had changed significantly.
“If you look at the cost of living measures and you look at the economic conditions, many of the measures that were put in the 2025-2026 budget, they have basically been retained,” he said.
“However, the economic conditions have changed.”
Dr Sami said the number of vulnerable Fijians had increased since the budget was prepared because of the global fuel crisis.
“If you look at the budget address, you are looking at around 130,000 individuals. That number obviously has gone up because of this fuel crisis.
“We have more Fijians now who have become vulnerable, who are finding it difficult to meet day-to-day important expenses.”
He said simply extending last year’s temporary measures might not be enough under current conditions.
“Retaining measures from the 2025-2026 budget and temporary measures are likely to be insufficient and hopefully, if our revenue position improves over the next few months, Government will be in a better position to come up with additional measures to support the poor and the vulnerable households.”
Dr Sami said assistance should protect vulnerable families without creating long-term dependence.
“We need to protect the poor and the vulnerable households, but we don’t want to make them too dependent, so a discussion on what should be the appropriate level of social sector spending, that’s obviously important.”
He also urged policymakers to prepare for the possibility of further global economic shocks.
“If external conditions deteriorate, IMF, for instance, revised the growth rates downwards, the conflict in the Middle East starts again, then we are looking at a much lower growth rate and much higher inflation rate.
“We need to be looking at that kind of scenario as well. We need to be thinking ahead.”
