[Photo: FILE]

The coalition government’s 2026-27 National Budget should focus on what’s within its control, as predictability works well for any government.

This was highlighted by ANZ Pacific Economist Dr Kishti Sen, who says greater clarity and consistency in the legislative and policy agenda is what the private sector will be looking for.

Sen says it is a challenging position for any government to cushion the impacts of the geopolitical tensions and the global fuel crisis.

He adds that striking the right balance will be key in the year ahead for the Fijian people, who are facing affordability pressures driven largely by factors outside their control, while maintaining fiscal discipline.

Finance Minister Esrom Immanuel had earlier stated that the 2026–27 National Budget will be “responsible.”

Sen states that a responsible budget will be one that avoids overspending on operations and sets out a clear path to improving fiscal balances over time, including moving toward a surplus to gradually reduce debt.

Sen further recommends that more investment opportunities need to be created to support the transition of smallholder farming to more commercial farming models, alongside continued focus on other key sectors of the economy.

He stresses that agriculture presents a strong opportunity.

Dr Sen adds that there is potential to transition from a smallholder model to more commercial farming to maximise opportunities, particularly in commodities such as kava, turmeric, taro, ginger, vegetables and eggs, where export demand has been growing in recent years.

Fiji’s debt is sitting at approximately $11.4 billion and Dr Sen suggests that a clear pathway towards improving fiscal balances over time must be set.

He states that reducing debt sustainably requires strengthening fiscal positions so that, over time, debt levels can be stabilised and gradually reduced.

Dr Sen says that predictability and consistency in policy and the legislative framework remain critical to giving investors the confidence to commit capital over the long term.

The total appropriation for the 2025-26 fiscal year was $4.25 billion.