Nikhil Aiyush Kumar 
[Photo: FILE]
The government has been urged to prioritise measures that reduce cost-of-living pressures, strengthen essential services and support economic recovery in the 2026–2027 National Budget.
University of the South Pacific economics lecturer Dr Nilesh Chand says the upcoming budget must provide direct relief for households and businesses struggling with rising costs linked to fuel, electricity and inflation.
One of his key recommendations is reducing the Value Added Tax rate from 12.5 percent to 9 percent, which he says would provide immediate relief for consumers.
“Also, a consultation should be focused more on price monitoring, enforcement in terms of consumer protection and these retail inspections.”
Dr Chand says the government should also strengthen support for small and medium-sized enterprises by improving the ease of doing business and assisting market vendors facing increasing operational costs.
“I think they need to rethink some of the things that are affecting business in terms of the interest rate. I’m not saying it’s high or low, but they should be able to gauge themselves and then try to set a good, favourable rate.”
The economist is also calling for stronger consumer protection measures, including better price monitoring and targeted assistance for vulnerable households.
He says the 2026–2027 National Budget presents an opportunity for the government to address immediate financial pressures while laying the foundation for sustainable economic growth.
