Expect increased Govt expenditure, no surprises in taxes, and focus to continue on compliance – Prof. Prasad

As we get ready for the 2025/2026 National Budget announcement tomorrow, expectations are high that the government will deal with some pressing issues in the country which include cost of living, challenges in the education, health, infrastructure and housing sectors.

Deputy Prime Minister, Professor Biman Prasad has said that if the global trade war continues with the major players and it affects tourism, disposable income goes down for those coming to Fiji and remittances slow down, then the government will be looking at a slightly increased expenditure policy.

People in Fiji currently receive an average of more than $100 million in remittances on a monthly basis from their loved ones overseas.

The Deputy Prime Minister says a bigger budget would mean increasing social welfare, increasing support to farmers, having additional subsidies for increased production, and supporting infrastructure that will allow people to spend more money.

Professor Prasad adds the coalition government inherited one of the most dilapidated health and education infrastructure and they are struggling to cope with it and also to allocate appropriate expenditure to these areas.

Professor Prasad says the government’s ability to have an expansionary budget is because their revenue base remains strong based on the first two budgets delivered by the coalition government, and the debt to GDP ratio standing at about 75 percent compared to more than 90 percent when they came in. He adds Deputy Prime Minister, Manoa Kamikamica has stated that billions of dollars in investments are underway and this will also have a positive economy.

Professor Prasad says there has also been a surge in domestic investments.

He stresses there will be no surprises, they will not chop and change tax policies and they are not anticipating any increases in taxes or new taxes.

They are also looking at monitoring exorbitant price hikes of goods and taking action against unscrupulous businesses who are not passing down tax or duty reductions announced by the government.

Professor Prasad says they expect the FCCC, Consumer Council of Fiji, the Fiji Revenue and Customs Service and the Ministry of Finance to carefully monitor the policies and ensure that the benefits are passed down to the people.

He also says tax compliance is something that they will continue to focus on, and their revenue collections remain ahead of the forecast.

He adds they are looking at the loopholes and unexplained wealth.

The Deputy Prime Minister says they are addressing not only the issue of drugs and drug proceeds but also compliance by everyone.

He also says they will continue to focus on wastage and look at Ministries not having their meetings in fancy hotels and reducing delegations for overseas travels when it can be done.

Professor Prasad will deliver the 2025/2026 National Budget at 10am tomorrow.

We will have live coverage of the budget address from 10am tomorrow on our website, fijivillage.

Stay with us as we will bring you how the National Budget will affect your pockets and how the government plans to provide services to the people through the tax dollars collected.