[File Photo]

The 2025-2026 national budget will focus on supporting Fijians in coping with rising costs while also preparing the economy for possible global shocks.

Deputy Prime Minister and Minister for Finance Professor Biman Prasad made these comments, saying both previous budgets were guided by responsible economic management, with strong attention to tax reforms and income.

The DPM is hinting that the upcoming budget will provide certainty.

Deputy Prime Minister and Minister for Finance Professor Biman Prasad

Professor Prasad says while some price increases are beyond the government’s control, key steps like removing VAT from 22 essential items and reducing certain import duties over the past two years have helped ease the cost of living.

“So the items that have zero VAT have also seen prices go up. And for some, the prices have gone down, because when we import from overseas, if it’ss zero VAT and low duty, the prices have still gone up.”

Professor Prasad says there is an uncertain issue in the global economy due to the current tariff war between major economies.

He says that if the trade war continues, Fiji will face impacts on some of its key sectors.

“The direct impact of tariffs in the short term may not be that prominent, but if the global economic uncertainty and global economic environment lead to a slowdown in the global economy, our source destinations for tourists, and that will work through different mechanisms, through remittances, and through tourism. If disposable income goes down in some of those countries, then we may have an impact on us overall.”

The different ministries and agencies are making submissions to the Finance Ministry on what they want in their budget allocations for the new fiscal year.

With the Fijian economy envisioned to grow by three percent this year, the Finance Minister says this puts Fiji in a strong position to shield itself from a potential global economic slowdown.

Stream the best of Fiji on VITI+. Anytime. Anywhere.