‘Deficit is about choices, not figures’, Govt defends Budget

The Government has defended its $1 billion deficit in the 2026-2027 National Budget, saying the decision reflects a balance between managing Fiji’s economic challenges and protecting households from further pressure.

Minister for Finance, Commerce and Business Development Esrom Immanuel said the Budget was prepared against the backdrop of global economic uncertainty, including a fuel crisis that reduced projected government revenue by about $200 million.

Speaking at the National Budget Forum 2026 at Civic Centre in Suva last night, Mr Immanuel said the deficit should not be judged by figures alone, but by the decisions made during a challenging period.

“The deficit should not be judged by figures alone, but by the difficult choices made during a period of global uncertainty,” he said.

The 2026-2027 Budget forecasts government revenue of $3.82 billion and expenditure of about $4.87 billion, resulting in a fiscal deficit of approximately $1 billion, or 7 percent of GDP.

Mr Immanuel said the Government decided against cutting essential services, reducing public sector salaries or increasing major taxes, saying such measures would have placed additional pressure on families already dealing with rising living costs.

Instead, the Government reduced operational spending across ministries by about 10 percent while continuing support for social welfare, education, health services and vulnerable households, he said.

The Minister said the Budget also focused on long-term economic growth through major infrastructure projects in health, roads, water and flood protection, with more than $2 billion planned over the next four to five years.

He said the Government’s approach was to support people through a difficult period while building the foundation for a stronger and more resilient economy.