Budget 2026-2027

$647m health budget to drive major transformation

June 26, 2026 10:27 am

The government has allocated $647 million to the health sector in the 2026-2027 National Budget, with funding aimed at improving hospitals, expanding healthcare services and addressing major health challenges.

Finance Minister Esrom Immanuel says the health sector has faced years of neglect and underinvestment, and the government is now taking steps to improve the service delivery.

Of the total allocation, $477 million has been provided to the Ministry of Health and Medical Services for the salaries of doctors, nurses and allied health workers, the purchase of medicines and medical supplies, and biomedical equipment.

A major part of the investment is the $500 million Pacific Healthy Islands Transformation Project, supported by the World Bank, Asian Development Bank and the OPEC Fund.

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Immanuel says the project will help transform the health system over the next four years.

One of the key projects is the construction of Fiji’s first radiotherapy and cancer treatment centre at the Colonial War Memorial Hospital.

The facility will include chemotherapy services and modern cancer treatment equipment capable of treating up to 60 patients a day.

The Finance Minister says the centre will reduce the need for patients to travel overseas for treatment.

The government will also add 56 new beds at CWM Hospital to help ease overcrowding and improve patient care.
Seventeen health facilities around the country, including in Valelevu, Lami and Nausori, will also be upgraded or rebuilt as part of efforts to improve primary healthcare services.

In addition, at least 70 health facilities will be digitally connected through a partnership with UNICEF to improve patient care, data sharing and service delivery.

A total of $41 million has been allocated in the new budget for the implementation of the PHIT project.

The government is also progressing plans for a new national tertiary hospital in Valelevu.

Meanwhile, Australia has committed AUD10 million for urgent upgrades at CWM Hospital, including roof and drainage repairs, improvements to water supply systems and refurbishment of hospital wards.

Immanuel says the government is also reviewing arrangements for the operation of Lautoka and Ba Hospitals to ensure quality healthcare services are delivered cost-effectively.

He says significant progress has already been made through investments in cardiac services and hospital infrastructure.

Since 2022, Health Care Fiji has carried out more than 300 open-heart surgeries and over 1,000 advanced cardiac procedures.

The budget provides $120 million for the continued operation and maintenance of Lautoka and Ba Hospitals.

The Finance Minister also confirmed that construction of the 100-bed Super Specialty Hospital in Nasinu, supported by the Government of India, is expected to begin early next year.

He says government support has also encouraged private investment in healthcare, with several private hospitals now providing advanced medical services.

Immanuel also warned that HIV remains a serious concern and described it as a major threat to the country.

To address the issue, the government has allocated around $12 million for awareness programmes, HIV medication, testing, treatment services and other prevention measures.