PM defends budget balance

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Prime Minister Sitiveni Rabuka delivers his speech during the Parliament sitting in Suva yesterday. Picture: PARLIAMENT OF FIJI

PRIME Minister Sitiveni Rabuka says the 2026-2027 National Budget strikes a balance between fiscal responsibility and targeted investment, with public spending focused on protecting vulnerable Fijians while driving economic growth.

Responding to the budget debate in Parliament yesterday, Mr Rabuka said Government remained a responsible borrower, directing public funds towards projects that improved livelihoods, expanded economic opportunities and delivered long-term value.

He said the administration would continue to create an environment conducive to investment while maintaining strict spending discipline and regularly reviewing expenditure to maximise returns.

“It is spending where it matters most, protecting those most exposed,” Mr Rabuka said.

As part of efforts to improve public sector efficiency, he confirmed Government was undertaking a review of the civil service.

Mr Rabuka said expenditure reforms would include tighter controls on travel, workshops, fuel and vehicle maintenance, alongside strengthened value-for-money assessments and greater emphasis on performance.

On the revenue front, the Prime Minister said Government was broadening the tax base, strengthening compliance, recovering outstanding tax arrears and modernising tax administration to support Fiji’s growing digital economy.

Addressing cost-of-living pressures, he said the budget recognised the financial challenges facing households and placed targeted relief at the centre of Government’s response.