Cost of living and rising food prices a near-consensus national crisis - Dialogue Fiji

The cost of living crisis is now the biggest issue affecting Fijians, with nearly one in two Fijians identifying it as their main concern.

The findings come from the National Budget 2026–2027 Public Priorities Survey, a nationwide survey conducted by Dialogue Fiji involving 1,266 respondents across all four divisions, making it one of the most significant citizen-based assessments of national budget priorities in recent years.

Dialogue Fiji Executive Director Nilesh Lal says what they are seeing is not a marginal concern, but a near-consensus national crisis.

He says the cost of living pressure is dominating how people experience the economy, and it is shaping expectations of what the national budget must deliver.

The survey also found that more than half of the respondents (53.2 percent) identified rising food prices as the biggest challenge facing their household.

Lal describes this as an extraordinary result, saying when more than half of respondents point to food prices as their biggest challenge, it shows this is not only widespread, but something households are confronting every day.

The report highlights the severity of the situation, with a combined 69.8 per cent of respondents rating their household challenges as severe or very severe.

The survey also reveals widespread economic hardship, with 49.8 percent of respondents reporting difficulty paying for food and basic items in the past 12 months, while only 5.8 percent reported facing no challenges.

Lal says this is not a single-issue problem, with households dealing with compounded pressures, including rising prices, income constraints and service delivery challenges at the same time, which is what makes the situation particularly serious.

Another key finding is that 50.4 percent of respondents say government spending does not reflect the needs of ordinary people.

When combined with the 26.8 percent who are unsure, a total of 77.2 percent either reject or are unable to confirm that current spending aligns with their needs, while only 22 percent expressed confidence.

Lal says this points to a clear perception gap between policy and lived experience.

He stresses that when more than three-quarters of respondents are either unconvinced or unsure, it raises important questions about how effectively public spending is translating into real impact on people’s lives.

Dialogue Fiji is also warning that while the cost-of-living crisis dominates public concern, expectations of quick fixes through the national budget are misplaced.

The Executive Director says the government has limited ability to directly bring down prices through short-term fiscal measures.

He says this was evident in last year’s VAT adjustments, where small reductions did not translate into meaningful price relief for people.

He says such measures risk benefiting intermediaries in the supply chain more than households, while also reducing government revenue.

He adds that large-scale tax cuts are not a realistic option under current fiscal conditions, and a significant reduction in VAT is simply not feasible without undermining government finances.

Dialogue Fiji also pointed to the broader fiscal context shaping budget decisions, saying government finances are in a precarious position.

Lal says operational expenditure has expanded significantly, while the operating surplus has been reduced to a razor-thin margin.

He says this means almost all government revenue is being absorbed by recurrent expenditure, including salaries, administration and ongoing costs, leaving limited room for capital investment and productivity-enhancing spending.

He warns that this structure limits the government’s ability to respond to the crisis in a meaningful way.

Lal says if the bulk of revenue is tied up in operational expenditure, the state’s capacity to invest in long-term solutions, whether in agriculture, infrastructure or job creation, is severely constrained.

The survey also identifies health as a top priority, with nearly one in two respondents selecting it among their top three areas for government spending, reflecting widespread concern about access, quality and reliability of health services across the country.

Dialogue Fiji emphasised that the survey is one of the largest and most structured empirical exercises undertaken in Fiji to understand what ordinary people want from the national budget, providing a level of evidence often missing in policy discussions.

The organisation confirmed that the full report has been formally submitted to the Minister for Finance as part of the 2026–2027 national budget consultation process, and is available on its website.