Finance Minister Esrom Immanuel has defended the 2026-2027 National Budget as a disciplined fiscal plan designed to restore the country’s financial stability rather than deliver pre-election giveaways.
Presenting his first national budget in Parliament after less than eight months in the portfolio, Mr Immanuel said the Government faced the difficult task of managing the nation’s finances at a time of significant fiscal pressure and global uncertainty.
“Mr Speaker Sir, this Budget is not a populist budget that one would expect before an election, nor is it built on short-term promises or commitments that the country cannot afford. This is ‘A responsible budget for sustainable future’,” he said.
The Finance Minister said the budget was realistic, disciplined and centered on delivering tangible outcomes for Fijians.
“We will live within our means, make prudent choices and invest in the foundations that will strengthen the economy, create jobs and secure a more stable future for all Fijians,” Mr Immanuel told Parliament.
He said the Government had a responsibility to be honest with the public about the country’s financial position.
“In a period of uncertainty, leadership requires honesty and responsibility… the Fijian people deserve an honest assessment of the challenges before us and decisive action and leadership to provide solutions.”
Mr Immanuel said Fiji’s fiscal position had changed dramatically over the past decade, with public debt increasing from about $4 billion in 2016 to almost $12 billion by the end of 2026, pushing the debt-to-GDP ratio from around 43 per cent to almost 85 per cent.
He said the increase reflected the combined impact of major events including the COVID-19 pandemic, Tropical Cyclone Winston and ongoing global geopolitical tensions and energy market disruptions.
The Minister also highlighted rapid growth in government spending, which rose from around $3 billion to $4.8 billion, while operating expenditure more than doubled to almost $4 billion, accounting for more than 80 per cent of total spending.
Mr Immanuel said the expansion of Government services had also seen the public sector workforce grow to more than 42,000 employees, including civil servants, disciplined forces, independent institutions and statutory bodies.
He said wages, salaries and associated support services now cost the Government more than $2.3 billion annually, representing almost half of the national budget.
“Of this $2.3 billion, over $1.5 billion per year is required just to cater for the wages and salaries of the 42,000 employees. This is equivalent to almost $6 million per day or almost $60 million per fortnight.”
He added that a further $800 million annually was required to fund operational support, including office accommodation, vehicles, fuel, travel, electricity, telecommunications, IT systems, training, security and maintenance.
“So, basically now we need $9 million per day just to operate the public service,” Mr Immanuel said.
