FLP says Budget fails working families

The Fiji Labour Party (FLP) says workers are being forced to shoulder the burden of the Coalition Government's 2026-2027 National Budget while businesses continue to benefit from generous tax concessions.

FLP leader Mahendra Chaudhry criticised the Budget delivered last Friday, saying it failed working families by reducing employer contributions to the Fiji National Provident Fund (FNPF), leaving the minimum wage unchanged and offering little relief from the rising cost of living.

Mr Chaudhry described the two percentage-point reduction in employer FNPF contributions as "totally unjustified", saying it would reduce workers' retirement savings at a time when many families were already struggling financially.

"The Budget proves beyond doubt that the parties in the Coalition Government have no feelings for the workers," he said.

Mr Chaudhry said the Government's decision to review the minimum wage, rather than increase it, delayed much-needed relief for low-income earners.

He said the minimum wage had remained at $5 an hour since April last year while the cost of food and other household essentials continued to rise.

Mr Chaudhry also questioned why the Government had not introduced additional cost-of-living measures, such as reducing Value Added Tax (VAT), lowering import duties or expanding the list of zero-rated food items to include meat, eggs and dairy products.

He claimed the Budget favoured businesses through tax concessions while asking workers to make further sacrifices.

"The attack on the pension savings of our workers is typical of a Budget that has gone overboard in granting tax-free holidays and concessions to the business sector," he said.

Mr Chaudhry argued there was no evidence that banks, manufacturers, retailers, tourism operators and other major businesses were under financial pressure that justified reducing employer FNPF contributions.

He also claimed the Government stood to save about $30 million through the reduction, accusing it of making workers pay for what he described as years of excessive Government spending.