It should not take a crisis or a challenging economic environment for the Government to remember the private sector and the importance of the private sector.
That was the message from Omcore Technologies CEO and Founder Arvind Maharaj while speaking during a panel discussion at the National Budget Forum organised by Dialogue Fiji.
Maharaj says when the going is good, the private sector is squeezed from all angles, but when the going is tough, only then does the focus shift to support for the private sector.
He says, on balance, he would describe the Budget as responsible, stable and targeted.
He says it is not a giveaway Budget, which is important, and Government is clearly working within very limited fiscal space.
He says growth for 2026 has been revised down to 1.5 percent, the deficit is around 7 percent of GDP and debt is projected at around 85 percent of GDP.
Maharaj explains that, from a private sector perspective, the first positive is that the Budget recognises reality.
He says Fiji cannot tax, borrow or spend its way into sustainable growth, which has to come from productivity, investment and private sector activity.
He says the second positive is tax stability and that, for businesses, especially MSMEs, predictability and certainty matter the most.
Maharaj says the decision not to increase corporate tax is important because businesses are already facing higher fuel, freight, electricity, wage, rent and compliance costs.
He also highlighted the impact of wage increases.
INSERT: Maharaj on wage increase 3rd July
Maharaj says the temporary reduction in the employer FNPF contribution from 10 percent to 8 percent is also meaningful; for larger firms it is balance sheet relief, while for smaller firms it improves cash flow which may help retain staff, pay suppliers, manage overdrafts or reinvest in small upgrades.
He says the fuel duty concessions for key sectors, support around electricity surcharges, bus fare support and duty reductions on selected construction and consumer items all matter.
He adds that they may not remove the cost problem, but they show that Government understands that business costs are now one of the biggest threats to recovery.
Maharaj says the increase in the Training Grant Scheme allocation, the 150 percent investment allowance for businesses setting up training centres and the support for Peer-to-Peer lending and equity crowdfunding are also useful signals.
He says Fiji has a skills problem, a productivity problem and a capital access problem, and these measures point in the right direction.
He says for MSMEs, access to finance is often the difference between surviving and expanding.
He explains that many small businesses do not fail because the idea is bad; they fail because working capital is too tight, approvals are slow, compliance is heavy and formal lending is difficult.
He says any move that broadens funding channels is most welcome.
Maharaj says the broader direction towards infrastructure and private sector-led growth is also positive.
He says roads, water, energy, ports, airports and faster investment approvals are not abstract issues; they directly affect business productivity.
However, he stresses that the Budget itself does not create growth.
He says businesses create growth when they invest, employ, train, formalise, innovate and take risks.
He says the Government's role is to create an environment where the risk becomes worth taking.
Maharaj says that while he supports the broad direction of the Budget towards stability, private sector confidence, skills, finance and infrastructure, the real economic test will not be the Budget speech.
He says it will be whether MSMEs, the engine of economic growth and the golden goose for Government, feel the difference in cash flow, approvals, utilities, compliance and confidence over the next six to 12 months.
