News

PM flags budget pressure

May 21, 2026 4:56 pm

[Photo: FILE]

Rising fiscal pressure is pushing Fiji toward a possible mini-budget in July.

The move comes as the government weighs election costs, social spending and global price shocks.

Prime Minister Sitiveni Rabuka says the country remains financially stable for now.

But he warns that conditions are tightening. He states that the current budget cycle will be completed. However, funds will need to be reallocated to keep services running.

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“So what we will do is to consider the expenses or expenditure involved in these ones as we come to consider the budget after the 31 July end of this current budget. So, for the national election, general election? The next election, the general election, is governed by the constitution. So we will have to consider that.”

Rabuka said the government would consider all election-related costs together. This includes municipal elections and preparations for the next general election. He says these expenses will likely fall under the next budget cycle.

He confirms the general election is constitutionally fixed. It cannot be easily moved. He says the government has very little leeway on timing.

On the municipal elections, Rabuka says $18 million has been set aside. That funding will now be redirected. He says it will be used to ease wider social costs and support struggling households.

He says there is no new spending being introduced. Instead, money will be shifted within existing budget votes. The Ministry of Finance is currently working through the changes.

Rabuka also confirms that $30 million in Australian budget support will help fill gaps. He says it will be used to plug shortfalls created by reallocations. It will support existing government plans, not increase spending.

On a proposed electricity surcharge, Rabuka said the matter was still under review. He says the government is consulting stakeholders, including energy authorities and regulators.

He adds that decisions will be made within a tight timeframe, including the next 48 hours.

He says power supply challenges are being managed in some areas. Fuel supply has improved in parts of the country. But he warns that the government may still need to consider further measures if conditions worsen.

Rabuka says consultations are ongoing on the wider energy proposal. He says environmental assessments and regional comparisons are also part of the process. He stresses that no final decision has been made.

On the impact of rising costs, he says the government is trying to avoid further burden on households. He acknowledges concern over affordability pressures and says this is central to decision-making.

He says Fiji is facing the same global supply chain pressures as its development partners. He says these are external shocks beyond government control.

He confirms that Fiji is in a position to complete the current budget cycle.

But he says reallocation will be necessary.

Rabuka adds that a mini-budget is very likely to adjust spending through to year-end before a full budget next year.