2026-2027 National Budget

Only a few hours remain for the delivery of the 2026/2027 National Budget – a time when we are going through one of the most turbulent periods due to many global and domestic factors resulting in the increasing cost of living pressure and the people of the country expecting solutions from the government.

Many Fijian families are struggling with the cost of living, businesses are facing higher operating costs and skilled workers continue to leave the country in search of opportunities overseas.

People are waiting to see if the government will deliver policies that assist us in ensuring we remain resilient, and ensure that there are growth opportunities and incentives to bring about positive and sustainable outcomes.

We have many challenges and the people are waiting to find out on how the government will deal with our safety and security concerns due to the rising drug trade and use, and crimes associated with these activities, the concerning HIV epidemic, many challenges in the health sector dealing with facilities and personnel, the education sector and how we can ensure our standards are lifted despite many teachers going abroad, our increasing housing needs with many families unable to purchase their own homes, providing targeted assistance to the most vulnerable in our country, infrastructure challenges including our water and sewerage network, roads and bridges, investment and employment opportunities, increasing our production through higher agricultural activity including commercial farming based on the availability of land, the overall focus on increasing productivity, the efficient use of government revenue and borrowings, and the plans and allocated budget for the next general elections.

The government also needs to have some reserves to be ready for any major shocks like a major weather situation with the El Nino period starting.

It also has to make some tough decisions as revenue projections for the current financial year are estimated at around $3.9 billion while government expenditure is projected at $4.8 billion.

Government debt is also expected to reach around $11.4 billion, equivalent to about 84 percent of GDP by next month.

While it has been stated that we all know that the government needs to borrow, the critical question is what is the money being borrowed for and how much of that will be utilised for capital works to improve services for the people.

Inflation is projected to exceed 6 percent.

It has been revealed that government expenditure has increased significantly over the past three years, rising by about 35 percent, reflecting increased spending on public sector wages, social services, infrastructure, debt servicing costs and other development priorities.

Economic growth for Fiji this year has been revised downwards from the 3 percent forecast at the end of last year to 1.5 percent, with downside risks remaining elevated.

Reserve Bank of Fiji Governor, Ariff Ali had earlier said that there are many factors that need to be considered urgently that are affecting us, which include the Ease of Doing Business in Fiji, the crime rate, drugs and HIV.

Ali said all these issues affect people and he is also concerned that the driver of the economy, tourism will be affected by some of these factors if nothing is done.

Ali had said we need to urgently address the issue of approvals and Ease of Doing Business as he had heard that $1 billion in loans had been approved for the private sector but this has not been drawn down.

Ali said the reason why these loans have not been drawn down by the private sector is due to pending approvals relating to their projects.

With foreign reserves standing at around $3.4 billion, sufficient to cover 4.7 months of retained imports, we need to continue to ensure our reserves remain above 4 months.

The RBF says the reserves are expected to remain adequate in the near to medium term, supported in part by Government loan drawdowns from international partners.

Maintaining adequate foreign reserves is essential for Fiji, as they ensure the country can continue to purchase critical imports and helps support stability in the value of the Fijian dollar.

Fiji needs to do a lot to increase it’s production and exports as our total value of exports stands at over $2 billion while our import bill is at a staggering $7 billion plus figure.

All in all, delivering the budget is a balancing act to ensure that government is able to create attractive incentives, raise sufficient revenue, and prioritise it’s spending for the required services to the people of the country.

Minister for Finance, Esrom Immanuel will deliver the budget at 10am today.

Speaking ahead of the delivery of the budget, Immanuel has called on the people not to panic as the coalition government is aware of the issues, and it is going to put in place some strategies and action plans to deal with them, and to protect the people and the economy.

The Finance Minister says most of the programs that they put in place before and during the fuel crisis are expected to continue because they are not sure when this crisis will end, however, they expect that at least the fuel price is expected to go down.

He says when the fuel crisis started, they put into place some tough measures that will continue.

However, he says they are trying to grow the economy from a stable environment, and the emphasis will be more towards capital expenditure.

Immanuel says the government will start with some of the big projects that they were supposed to do, and that will be good.

He says the focus continues on growing the economy and to also be resilient in case something happens in the future, even natural disasters or issues such as what we are facing now.

Immanuel says if you compare this financial year and the new budget in terms of the nominal dollar, the amounts will probably be the same, however, if we look at the content of those budgets, he thinks they are doing more.

He says they will also account for the increase in prices.

Immanuel says they have continued to ask the question - "so what will we do" - as most or some of those issues were highlighted during a recent economic conference that he termed as a talkfest.

He stresses they have the required strategies and action plans in place.

Stay with your fijivillage team on the latest updates on the 2026/2027 National Budget as we will let you know what taxes and duties go up or down, how it will affect your pockets, and the government’s plans for the provision of services in the new financial year.

You can follow our live coverage with our latest up to the minute updates on our website and social media pages, fijivillage.

Continuing tax relief measures and subsidies, an expected reduction in fuel price, maintaining government expenditure at this year’s level for next year, ensuring capital projects kick off, maintaining the joint police and military drug operations, increased funding to tackle HIV, financially assisting our national airline Fiji Airways through a tourism service tax, and allocating funds for the general elections, a referendum and a census are some of the major announcements made in the 2026/2027 National Budget.    

Good news as Minister for Finance, Esrom Immanuel has announced the FCCC will soon announce major reductions in domestic fuel prices for July and following months which should ease our inflationary pressure and cost of business.

Everyday items such as potatoes, garlic, onions, tea and cooking oil will continue to attract zero duty. Duty on lamb products, which was reduced to zero percent, will continue, while the reduced duty rate of 15 percent for beef, ducks, corned mutton, corned beef and canned mackerel, down from 32 percent, will continue.

Fruits and vegetables such as tomatoes, cabbage, lettuce, cucumber, eggplant, pumpkin, banana, avocados, mandarins, watermelons and pawpaw will continue to attract only 5 percent duty, while other fruits and vegetables not produced locally, including apples, carrots, grapes, oranges, pears, celery, capsicums, mushrooms, kiwifruit, cauliflower, broccoli and nuts, will continue to attract zero duty.

The electricity subsidy and free water support for those earning $30,000 or less will continue.

Government will continue it's bus fare subsidy support in the next financial year with an allocation of $20 million. As a result, approximately 350,000 Fijians who rely on bus transport every day, including students using blue and yellow cards and adults using red cards, will not pay a single cent more despite the fare increase.

The Government will continue to support approximately 130,000 Fijians through social welfare, pension and aftercare programmes, with an allocation of over $200 million in this Budget. 

The Government will continue the $200 Back-to-School Assistance programme. This assistance will be paid in January 2027 before the commencement of the school year, with an allocation of $40 million.

Despite the difficult situation, Government will maintain the VAT rate at 12.5 percent and continue the zero-rating of essential, including flour, rice, sugar, canned fish, cooking oil, potatoes, onions, garlic, baby milk, powdered milk, liquid milk, dhal, tea, salt, soap, washing powder, toilet paper, sanitary pads, toothpaste, kerosene, cooking gas and prescribed medicines.

The Finance Minister says this Budget contains no increase in income taxes for workers and no increase in corporate taxes for businesses.

He says at a time when families are facing higher living costs and businesses are experiencing rising operating expenses, Government has chosen not to impose additional burdens on taxpayers.

There will be no reduction in civil service salaries.

The Government says it recognises the important role played by teachers, nurses, doctors, police officers, military personnel and public servants in delivering essential services to our people. Around 42,000 public servants directly support more than 200,000 livelihoods across Fiji. While Government has implemented expenditure restraint measures across the public sector, they have deliberately chosen not to reduce the salaries of our civil servants.

Import excise on new motor vehicles will increase by 5 percent and on used motor vehicles by 10 percent. VAT on personally imported electric vehicles will be reinstated at 12.5 percent.

Import duty on passenger vehicles with seating capacity of ten persons or more will be aligned at 5 percent to encourage greater use of public and shared transportation.

Immanuel says the Price Monitoring and Enforcement Taskforce will develop a stronger framework to ensure that benefits arising from tariff reductions and protection measures are passed through to consumers.

He stresses that the joint enforcement taskforce comprising the FCCC, the Consumer Council of Fiji, the FRCS and the Ministry of Finance will intensify market monitoring and price surveillance to ensure that tax and duty reductions are appropriately reflected in retail prices.

Immanuel says where evidence of unreasonable pricing behaviour is identified, Government will not hesitate to introduce price controls on additional essential items, remove tariff protections and apply the full penalties available under the law.

Government will also undertake a detailed study into shrinkflation and other emerging consumer issues affecting everyday products and services.

Import duty on aluminium structures such as doors and windows will be reduced from 32 percent to 15 percent.

Import duty on PVC boards will also be reduced from 32 percent to 15 percent.

Import duty on flavoured milk will be reduced from 32 percent to 15 percent. Import duty on plant-based food preparations will be reduced from 32 percent to 5 percent.

Government will introduce a new incentive package for the establishment of veterinary centres, animal sanctuaries and animal welfare facilities. Donations to qualifying animal welfare organisations will attract a 200 percent tax deduction.

Government will also introduce a 150 percent tax deduction for investments in new sporting facilities, gyms and sports development infrastructure.

The existing 200 percent tax deduction available for sponsorship of the Fijian Drua will be extended to Bula FC. The minimum sponsorship threshold will be reduced from $250,000 to $100,000, making the incentive more accessible to a wider range of businesses.

Government will introduce a new package of incentives to support Peer-to-Peer Lending and Equity Crowdfunding platforms. Qualifying providers will receive a five-year tax holiday.

Income earned from investments of up to $200,000 annually through licensed Peer-to-Peer Lending platforms will be exempt from tax. Tax-free treatment will also be extended to qualifying institutional investors and capital gains tax exemptions will be expanded to include eligible Equity Crowdfunding investments and innovation-based enterprises. These measures will help broaden access to finance, particularly for small businesses and start-up enterprises.

A five-year tax holiday will be introduced for businesses investing at least $5 million in new mahogany processing facilities. This incentive will support value addition, downstream processing and employment opportunities within Fiji's forestry sector.

Government will also introduce a thirteen-year tax holiday for businesses investing at least $20 million in the establishment of a new cement manufacturing facility. 

A new tax incentive will be introduced for companies with at least 30 percent iTaukei shareholding investing in eco-tourism, cultural tourism and arts-related businesses.

Qualifying investments between $5 million and $10 million will receive a seven-year tax holiday, while investments exceeding $10 million will receive a thirteen-year tax holiday.

Government will extend duty concessions on diesel for hotels, resorts and mining companies until October 2026.

Duty concessions currently provided to bus operators will also be extended until October 2026. This measure complements Government's decision to fully subsidise the recent 22.5 percent increase in bus fares and will help maintain affordable public transportation for our people.

Duty concessions on diesel and heavy fuel oil currently provided to Energy Fiji Limited will be extended until October 2026. This support will assist EFL in managing fuel costs while maintaining a reliable electricity supply across the country.

Elections, Referendum and Census

For the conduct of the upcoming elections, the Fijian Elections Office has been allocated $23.2 million to cater for the preparation of the upcoming General Elections.

In addition, a separate budget of $18.2 million has been set aside under Head 50 to cater for the main election day expenses.

The Electoral Commission is provided a funding of around $556,000, while for the conduct of the national referendum a funding of $20 million has been set aside.

The 2027 Census will also be conducted with a total funding of $12 million in this budget.

Tourism and Fiji Airways assistance

Immanuel says to assist Fiji Airways, the tourism industry has also come on board to support Fiji Airways and has broadly supported a temporary 5 percent tourism services tax on all hotels and tour and cruise operators with an annual turnover of $2 million or more for the next 12 months.

The revenue generated from this 5 percent tourism tax will be ring fenced and fully directed to Fiji Airways.

The industry has broadly agreed that the burden of the tax will be largely absorbed by the hoteliers and tour & cruise operators and not passed on. The 5 percent tourism tax will be effective from 1st September 2026 and is expected to generate around $70 million for the airline.

Immanuel says recently the airline has been under some financial pressure following the substantial price increase in aviation turbine fuel and at a time when the airline was still recovering from the massive financial losses registered during the pandemic.

He adds Government as the major shareholder and given the strategic importance of Fiji Airways will support the airline with the planned $200 million Government guarantee that will be brought to this Parliament soon.

In this budget, they are extending the loss carry-forward provision for the airline from the standard 8 years to 15 years and waiving fees and charges amounting to around $10 million for the next 12 months.

They are also working together with other key stakeholders including Fiji Airports, Air Terminal Services, Civil Aviation Authority of Fiji, Fiji National Provident Fund and Fiji Development Bank to help ease the financial pressure on the airline.

The government is also working with the investor community to fast track and support investment in adding additional hotel room capacity.

The major hotel investments will add around additional 5,500 rooms with these hotel projects valued at over $3 billion. Of these 5,500 rooms, around 1,400 are in construction stage, 2,500 rooms in pre-development stage and around 1,600 rooms in conceptual stage. 

The Minister for Finance says we need to support Fiji Airways, our national airline, which brings most of our tourists and plays a critical role in positioning Fiji as the aviation hub of the South Pacific.

The Ministry of Tourism and Civil Aviation is allocated a budget of $75.8 million in 2026-2027.

Tourism Fiji has been allocated $41.7 million, including $33 million for marketing. As global travel conditions become more uncertain, Tourism Fiji is re-strategising its marketing efforts to ensure Fiji remains competitive and delivers greater value from tourism.

Major boost for health sector and increased funding for HIV

The Government is embarking on a major $500 million health project, namely Pacific Healthy Islands Transformation Project with the support of the World Bank, Asian Development Bank, and OPEC Fund.

While announcing a $647 million allocation to the health sector in the next budget, Minister for Finance, Esrom Immanuel says $477 million is provided to the Ministry of Health to fund the salaries of doctors, nurses and allied health professionals, procurement of medicines and medical supplies, and purchase of biomedical equipment.

The Minister says they will establish Fiji’s first radiotherapy and cancer treatment centre at CWM Hospital.

Construction will begin in the year ahead, with completion over the following years.

The facility will house linear accelerator technology and chemotherapy capacity to treat up to 60 patients daily.

This will reduce reliance on overseas referrals and provide lifesaving opportunity to our people.

The Government will expand acute care capacity at CWM Hospital, adding 56 new beds for adults and children. This will address the persistent congestion and connect maternity services to operating theatres, eliminating over time the current reliance on container walkways.

Immanuel says keeping the CWM Hospital operational and safe remains a critical priority until the new national tertiary hospital is ready.

The Government of Australia is supporting the master planning for the new national tertiary hospital in Valelevu.

Australia has committed AUD$10 million for urgent priority infrastructure upgrades at the existing CWM Hospital. The first tranche of works includes roofing and drainage remediation across key hospital buildings, installation of a new 200,000-litre potable water storage system with filtration, UV treatment and pumping, remediation of maternity sewer infrastructure and refurbishment of the Acute Patient Ward.

$120 million is provided for the ongoing operations and maintenance costs to Health Care Fiji for the Lautoka and Ba Hospitals.

The Government of India is also in advanced stages for the commencement of the construction of a 100-bed Super Specialty Hospital in Nasinu. Land acquisition is now complete, while detailed design and tender process is currently underway. Construction is expected to start early next year.

HIV response is allocated $12 million.

The Minister says the HIV issue has become a major threat to our people, and an urgent and decisive response is required to fight this crisis. With the support of Government of Australia, New Zealand and other development partners, Government has put together a multipronged response strategy focused on fighting drug use (which is lead cause of the HIV problem), raising national awareness, procuring HIV medicine, investing in identification and treatment, investing in required healthcare skills and overall preventative measures.

Free education, free bus fare scheme continues and $160 million for TELS

Good news for parents, with the Free Education Scheme set to continue in the next financial year after the Government allocated $61 million in the 2026/2027 National Budget.

While delivering the 2026/2027 National Budget, Minister for Finance Esrom Immanuel announced that $54 million has been allocated for transport assistance and $40 million for the $200 Back-to-School Assistance Programme.

He says an additional $74.5 million has been allocated for operating grants to higher education institutions.

Immanuel says the education sector has been allocated $883 million in the 2026/2027 Budget, the largest sector allocation, accounting for 18 per cent of the total Budget.

He says this includes $434 million for the salaries and wages of more than 13,000 teachers.

The Minister says the Government will introduce a new Postgraduate Diploma Scholarship Scheme to help meet changing labour market demands by supporting professional upskilling in priority sectors, while continuing funding for in-service public sector scholarships, apprenticeship programmes and technical skills training.

He says these initiatives will help address critical skills shortages, improve productivity and strengthen Fiji's long-term economic resilience.

Immanuel says $160 million has been allocated for TELS scholarships in the 2026/2027 Budget, benefiting 23,000 students, including 14,000 continuing students and 9,000 new students.

Civil service

$400,000 is provided for the review of the civil service to improve service delivery.

Government will undertake a comprehensive review of State-Owned Enterprises and selected public bodies. The review will identify opportunities to improve efficiency, strengthen governance, increase profitability, eliminate duplication and, where appropriate, consider restructuring, partnerships or divestment.

Immanuel says the taxpayers deserve value for money and Government assets must work harder for the benefit of the people.

The Government will undertake a study into the establishment of a Sovereign Wealth Fund for Fiji. This work will be undertaken by the Ministry of Finance together with either the Fiji National Provident Fund or the Fiji Investment Corporation Limited.

The objective is to explore whether Fiji should establish a Government-owned investment fund that can generate long-term returns, strengthen national savings and support future development priorities.

As part of the financial sector reforms planned for the next 2026-2027 financial year, the Reserve Bank of Fiji will pick-up again on the work it initiated a decade ago regarding the finalisation and implementation of a legislation to provide for the regulation and supervision of pension funds, and of persons concerned with the establishment, operation, administration and intermediation of pension funds in Fiji, including the Fiji National Provident Fund.

To assist employers and preserve employment, the Government will reduce the FNPF employer contribution rate from 10 percent to 8 percent. Employee contributions will remain unchanged at 8 percent.

This reduction in the employer contribution rate will take effect from 1st August 2026 and will remain in place for a period of 12 months.

The FNPF Board has declared an interest rate of 9.5 percent to members for 2026.

FNPF has delivered another strong performance in FY2026, with total investment income of over $1.2 billion - a result that reflects growth across every major asset class compared to the financial year ended June 2025.

The Fiji Revenue and Customs Service has been allocated a budget of $51 million.

A key initiative is the construction of new purpose-built Container Examination Facilities in Suva and Lautoka. This major investment by FRCS with the assistance from the Australian Government, will significantly enhance cargo screening and inspection capabilities, strengthening Fiji's ability to detect illicit goods, combat transnational crime and protect our borders.

The Office of the Attorney-General is allocated $9.8 million in the 2026–2027 Budget. The Fiji Law Reform Commission is allocated $750,000 to continue its programme of legislative review, stakeholder consultations and law reform initiatives.

Government is also providing $1 million to support the work of the Constitutional Review Commission. This funding will facilitate nationwide stakeholder consultations across 104 communities, public awareness and civic education programmes, media engagement and other activities to ensure that Fijians have the opportunity to meaningfully participate in the constitutional review process.

The Minister for Finance says any minimum wage increase must be carefully aligned with productivity improvements and take into account the impact on businesses, particularly micro, small and medium enterprises. $100,000 has been allocated in the budget to review the minimum wage in the next financial year.

The private GP scheme, which was introduced as a temporary response during the COVID-19 period will now be funded from the remaining balance in GP Trust Fund.

To support training and skill development, Government is recalibrating the NTPC levy allocations.

Effective from 1st January 2027, 50 percent of the levy will be redirected towards training and skills development, 10 percent will be allocated for public sector training through the Fiji Learning Institute for Public Service (FLIPS) and 40 percent will continue to support the workers compensation from the ACCF and Ministry of Employment. Government has also introduced a 200 percent tax deduction for eligible training and upskilling expenditures for employers.

The Ministry of Policing and Communications is provided a funding of $34.2 million in the 2026-2027 Budget.

$1.6 million has been allocated to support narcotics operations and the continued establishment of the Counter Narcotics Bureau.

$4 million is provided to continue the rollout of the BusinessNOW Building Permits and Approval Subsystem, which will fully digitise the construction permit approval process, making it faster, more transparent and easier for businesses and investors to obtain approvals.

The Ministry of Immigration has been allocated $14.8 million, including $5 million for the procurement of 100,000 passport books and $225,000 to combat human trafficking and ensuring compliance with national and international best practices and standards.

Through the iTaukei Resource Owners Support and Development Fund, Government will continue assisting landowners to unlock the economic potential of their land through residential and commercial development opportunities. This programme supports landowners to move beyond simply leasing land and become active participants in economic growth. A funding of $3.8 million has been allocated to support this.

The Ministry of iTaukei Affairs has been allocated a funding of $33.1 million in the 2026-2027 Budget.

A key initiative in the coming financial year is the launch of Fiji's first municipal Sorting-at-Source Programme in

Sigatoka. Under this pilot, households will separate recyclable and household waste at source, reducing the amount of waste sent to landfill and supporting a cleaner environment for future generations.

$300,000 has been provided to support the declaration of Navua as a town.

$3 million has been provided for the Western Division Dumpsite Remediation Programme.

The Ministry of Rural and Maritime Development has been allocated $35.4 million to continue improving the quality of life for Fijians living outside our urban centres.

Increased funding of $3 million is provided for construction and upgrade of community access roads, footpaths and foot bridges to help connect communities to schools, health facilities and essential services.

To incentivise landowners to continue making land available for agricultural purposes, Government will continue to fund the Committee for Better Utilisation of Land (CBUL) Programme with a total allocation of $6.9 million.

The Government will focus on sugar industry diversification in the medium term. However, in the interim the sugar industry will continue to be supported with funding support of $96.3 million. Amidst declining world sugar market prices, Government will continue with the guaranteed price of $85 per tonne for the 2026 season. With the forecast price of $57 per tonne, $41.6 million is allocated in the Budget based to cater for around a $28 per tonne top up payment.

Additional support for the sector will continue with a budget of $30 million for fertilizer and weedicide subsidy, cartage subsidy, upgrade of cane access roads, cane planting grant farm mechanization, farm incentive programme, and support for new farmers.

The Ministry for Agriculture, Waterways and Sugar Industry is provided a total funding of $221 million in the 2026–2027 Budget.

The Ministry of Women, Children and Social Protection is provided a total funding of $211 million. This will cater for welfare support to over 130,000 Fijians, including our vulnerable children, elderly, disabled and rural pregnant mothers.

$1.3 million has also been allocated for the Relocation and Resettlement of Informal Settlements and $500,000 is allocated to Habitat for Humanity. These projects will assist the Ministry of Housing to undertake civil works for the relocation and resettlement of 1,200 households from Veidogo, Nabua Muslim League and Kilikali to Koronivia and Mokosoi Greenfields.

$10 million is provided for the formalisation of 9 informal settlements in Tore, Field 4, Valewaquyaya, Sakoca, Vuniika, Nabare, Delaisaweni, Lovu seaside and Caubati.

$3 million is allocated to support first home buyers in the 2026-2027 Budget. Government has approved a revised structure for the First Home Ownership Assistance Programme to enhance housing affordability for low and middle-income households.

Under Category 1, households earning $30,000 or less, including those displaced from informal settlements such as Veidogo, Nabua Muslim League and Kilikali, will be eligible for grants of up to $40,000 for home construction and $30,000 for home purchase.

Category 2 has been revised to target households earning above $30,000 to $60,000. Under this category, the home purchase grant has been increased from $5,000 to $15,000, while the home construction grant remains at $20,000.

Housing Authority is working towards providing more than 2,900 residential lots and around 1,800 complete houses for sale in Nepani, Wanibuku, Davuilevu, Tavakubu, Tavua, Wairabetia, Tacirua, Waqadra, Waila and Veikoba.

The Government is also working together with PRB to invest in more low-cost housing projects.

Government is also collaborating with other key partners like Habitat for Humanity, HART, Koroipita and other private sector partners to deliver affordable housing solutions.

The Government will provide an exemption on outstanding wheel tax and road user levy for vehicles that have been off the road for a period of time, are in roadworthy condition and are presented to LTA for fitness inspection and renewal. The amnesty is intended to assist vehicle owners who have accumulated arrears in Wheel Tax and Road User Levy payments over time.

The upgraded NODA LTA platform will enable customers to conveniently access key services online, including renewals of driver’s licence and payments, thereby significantly reducing the need for in-person visits.

WAF is also in the process of formulating an infrastructure development charges framework to support economic development by catering to the growing demand for water and wastewater services for non-residential developments through a more sustainable and equitable cost-sharing mechanism.

WAF will establish a regional Water Academy to build the technical and vocational skills required to manage water supply and wastewater operations. This initiative is funded by a $10 million grant from ADB.

The government is looking at upgrading the Denarau Island wastewater infrastructure, the Pacific Harbour Wastewater Treatment Package Plant, and supporting localized wastewater treatment plants, pump stations, and distribution systems.

In the Western Division, the upgrading of water infrastructure is in progress at Dreketi Feeder Road, Vuda, and Wairabetia. These upgrades will benefit 18,000 people living within and along Dreketi Feeder Road, Vuda, Wairabetia, Nadi Airport, Nadi Back Road, and Sabeto Road. They are also investing in water extensions to previously unserved communities such as those in the Korovuto area in Nadi and the Coral Coast region in the Votua area in Sigatoka.

In the Northern Division, the government is upgrading the Benau Water Treatment Plant, undertaking water mains upgrades to Rara and Volanau in Labasa, constructing a new storage reservoir at Raviravi, and carrying out improvement works for Naidriva in Savusavu. In addition, the proposed Wainivasa water source in Taveuni is in progress.

To meet future demand for safe, reliable water supply in the greater Suva area, $1.2 million is allocated for pipeline realignment from Savura Pump Station to Tamavua Water Treatment Plant, and $2 million is budgeted for the preparatory works for the expansion of the Viria Water Treatment Plant from 40 megalitres to 80 megalitres as part of Phase 2 investments. These investments in the future will benefit 244,000 people living in the Suva–Nausori corridor.

The Water Authority of Fiji is provided with an increased funding of $291 million to upgrade and expand water and wastewater infrastructure around the country, including the upgrading of water sources, treatment plants, reticulation, distribution and non-revenue water reduction.

Major projects include $7 million budgeted for civil works and installation of a new 20-megalitre package plant at the Tamavua Water Treatment Plant. The project is targeted for completion in June 2027 and is expected to benefit 150,000 people living along the Suva to Togalevu corridor.

$11 million is allocated for the installation of 11.73 kilometres of new water mains, construction of a state-of-the-art pump station, and two 5-megalitre reservoirs. The project is targeted for completion in June 2027 and will provide reliable water supply for 14,000 people residing in Sawani, Colo-i-Suva, and Khalsa Road.

The Water Authority of Fiji has begun work on the development of a new water treatment plant in Navua as well as a new water supply scheme in the Wainadoi area, which will cover an area from Naboro to Nabukavesi, with the potential to extend towards Togalevu and Namelimeli in Navua, benefiting a population of 11,000.

The Government is working with the Government of China to upgrade approximately 82 kilometres of rural roads and the construction of 22 bridges, with a focus on strategic corridors such as the Nabouwalu, Wailevu West Coast and Natewa West Roads. Works are expected to commence during the later part of the year.

Civil works are expected to commence in the new financial year on the replacement of four critical bridges, namely the Lami Bridge at Suvavou, Medraukutu Bridge near the Lami Cement Factory, Sabeto Bridge, and Viseisei Bridge linking Nadi and Lautoka. $41.5 million is budgeted for this project in the new financial year. The full project cost is estimated at around $400 million, and funding has already been secured through the ADB and the World Bank.

Works are also in progress to finalize the detailed designs of six other critical bridges in the new financial year. This includes the planned replacement of the Sawani, Namotomoto, Lomolomo, and Labasa bridges, earmarked in the next phase.

The detailed design for the temporary and permanent bridge replacement is nearing completion for the Labasa Bypass Project. 

$4.5 million is allocated to conduct feasibility and design studies for road widening along Delainavesi to Veisari, Veikoba to Laqere, Princes Road, and Nasoso to Navutu (in the Nadi–Lautoka corridor). 

To ease traffic congestion experienced by commuters travelling on major urban road networks, the Government is providing the Fiji Roads Authority with a sum of $20 million in the next financial year. Of this, $15 million is budgeted for the widening of Ratu Dovi Road, construction of the Extension Street bypass to connect with Brown Street, and upgrades to Ratu Sukuna Road.

Government is providing $821 million to the Ministry of Public Works, Meteorological Services and Transport.

The Fiji Roads Authority is provided a funding of around $370 million. This includes $118 million for road maintenance; $77 million for road renewals, replacement, and resealing; $35 million for bridge renewals and crossing replacements; and $26 million for new sealing and upgrading of community and rural roads.

The Government is embarking on a major transformational Port expansion and redevelopment project to develop the Suva Port into a modern port facility.

The full project cost will be over $1.5 billion and will be implemented over a period of 5 years. Plans are also underway for further investments and expansion at the Lautoka Port including investment in shipbuilding and maintenance to serve Fiji and the region.

To support Fiji's national renewable energy and energy security objectives, EFL is progressing an investment program of approximately $2 billion, one of the largest infrastructure investments in our nation's history.

This program includes two new hydropower schemes providing 50 mega watts of renewable baseload power, approximately 165 mega watts of solar generation with battery storage, major grid upgrades, investment in transmission redundancy and the replacement of ageing infrastructure.

These investments will support Fiji's target of increasing renewable energy generation to 60 percent and ultimately 90 percent by 2035, while reducing dependence on imported fuel and strengthening long-term energy security.

Government will also continue advancing the Nadi River Flood Alleviation Project. This project, estimated to cost approximately $400 million, is being supported by the Australian Infrastructure Financing Facility for the Pacific, the Japan International Cooperation Agency and the Asian Development Bank. $3 million is allocated in this budget for initial preparatory works.

The first phase of the programme will finance strategic investments in roads, airports, water supply, sanitation, energy and waste management infrastructure across Vanua Levu and Taveuni. $20 million has been provided in this Budget for implementation activities next year.

The implementation has also commenced on the $440 million ten-year Vanua Levu Tourism Development Programme, known locally as the Na Vualiku Project.

Investment Fiji and the Ministry of Immigration have agreed to work together to fast-track the issuance of investor permits. Investment Fiji will provide a pre-engagement letter to the Ministry of Immigration containing key information required to process investor permit applications. This initiative is expected to reduce the processing timeframe for investor permits from 21 days to a maximum of 5 days.

Cabinet has established a high-powered taskforce to fast-track investment projects that are being delayed by approval agencies. This initiative will not bypass any laws, regulations or requirements. Rather, it will promote a more coordinated, solution-oriented and efficient decision-making process to support investment and economic growth.

Some of the major projects completed and commenced operations recently include FHL Towers in Suva, Ramada Encore in Labasa, Naval Base in Lami, Vuvale Plaza in Nadi, Orion Distribution Centre in Lautoka, and Sun Insurance Centre 2 in Nadi. Other major developments include the Staghorn submarine cable project in Natadola supporting digital infrastructure growth, the Lyndhurst Business Park in Nasinu as a significant mixed-use commercial hub, six-star resort in Yasawa by Kerzner Group, and Emerald Bay in Nadawa undertaking a mixed integrated real estate, housing, and tourism development.

The investment portfolio includes several landmark developments that continue to define the scale and quality of Fiji’s investment landscape. Key projects include the Carpenters Fiji Pte Ltd introducing Hilton Garden Inn in Suva, Sofitel Fiji Resort & Spa – Vatu Talei “The Jewel” in Nadi, the Crowne Plaza Wailoaloa Hotel, the Radisson Mirage Resort in Naisoso, Wananavu Resort in Rakiraki, Koro Beach Resort & Spa, and Vualiku Hotel in Labasa, all reinforcing strong confidence in Fiji’s tourism and hospitality sector.

The government already has a strong pipeline of private sector projects with 254 active investment projects valued at approximately $8.9 billion across key sectors of the economy. Of these, 116 projects are under construction.

Government or public debt is projected to increase to around $12.6 billion by the end of July 2027, equivalent to 84.8 percent of GDP.

With a total revenue of $3.82 billion and total expenditure of $4.87 billion, the fiscal deficit is set at $1 billion or 7 percent of GDP for the 2026-2027 Budget.

The Minister for Finance says unfortunately following the impact of the global fuel crisis, government tax revenue is projected to decline to $3.3 billion, almost $200 million lower than earlier anticipated. Therefore, overall revenue, which includes tax and non-tax revenue, is estimated at around $3.82 billion in the 2026-2027 Budget.

A total capital budget of $876 million has been allocated in the 2026-2027 Budget. 

The Minister says we need to reduce our operating expenditures in nominal terms in the years ahead. However, that would require national consensus and political bipartisanship as any major reduction in operating spending will require tough decisions on the size of the civil service & the overall public sector, level of social spending and social wages, funding for the sugar sector and overall Government operations.

Following these cost control measures, and after accommodating additional expenditure of over $200 million, the government is still maintaining overall expenditure at around $4.87 billion in the 2026-2027 Budget, similar to current year's Budget.

The 20 percent reduction in the salaries of all Ministers and Members of Parliament will also continue in the next financial year.

Government has also continued the broader cost-containment measures announced earlier this year, including tighter controls on overseas and domestic travel, vehicle usage, fuel consumption and other operational spending.

Minister for Finance, Esrom Immanuel has announced $200 million in new and additional expenditure for the general elections, referendum, national census, commencement of 4 major bridge replacement projects, investment to double the capacity of the Kinoya wastewater plant, investment in non-revenue water reduction, establishment of a new cancer treatment facility, major investment to upgrade our primary health care facilities, adding additional bed capacity at CWM, catering for the increased debt servicing costs, amongst other new expenditure commitments.

Operational expenditure across Government has been reduced by 10 percent.

Ministries, Departments and Agencies have been directed to reduce spending on travel, workshops, conferences, communications, maintenance, administration and the purchase of goods and services.

Grants provided to state entities, independent bodies, commissions and other grant recipient agencies have also been reduced by 10 percent.

Funding for vacant positions across Government has been reduced by 50 percent.

The recruitment will continue only for critical frontline positions and specialised roles necessary to maintain essential service delivery.

A holistic review of the civil service will be undertaken and staff from over-staffed agencies will be redeployed to Ministries that need additional manpower, with the required training and transition management.