Budget fails families, fuels brain drain: Chand

Opposition Member of Parliament Hem Chand has rejected the 2026-2027 National Budget, saying it fails to ease the cost of living for struggling families and does little to stop Fiji's growing brain drain.

Speaking in Parliament, Mr Chand said people he had spoken to were disappointed with the Budget and believed it offered little relief for ordinary Fijians facing rising living costs.

He said high food prices, the reduction in Fiji National Provident Fund (FNPF) contributions, low wages and the continuing loss of skilled workers remained major concerns.

"They universally echo the sentiment that this Budget lacks vision and proper planning, and they fear it will create further hardship for our children," Mr Chand said.

He claimed the increase in Value Added Tax (VAT) to 15 per cent in 2023 had placed a heavy burden on households.

"It wasn't a well-thought-out move. It has affected the bread and butter of Fijians, making it harder for families to make ends meet. This Budget punishes workers," he said.

Mr Chand criticised the Government's decision to reduce compulsory FNPF contributions from 10 per cent to eight per cent from August 1.

He said the move would reduce workers' retirement savings at a time when many families were already under financial pressure.

"Employers will pay eight per cent, meaning less will go into workers' retirement savings. This decision will directly affect workers, including teachers and other civil servants," he said.

"This reduction is unjustified. It will reduce retirement savings when families are already struggling financially."

Mr Chand also criticised the Government for not increasing the minimum wage, which remains at $5 an hour.

"Workers need immediate relief, not more consultations," he said.

He claimed the reduction in FNPF contributions effectively amounted to a two per cent cut in workers' retirement savings.

Mr Chand warned Fiji would continue losing teachers, nurses, engineers and other skilled workers to Australia and New Zealand unless better pay and incentives were introduced.

"We are training our best people for Australia and New Zealand," he said.

He said Fiji was already facing a shortage of qualified teachers, affecting the quality of education and student outcomes.

Mr Chand said employers were also struggling to find skilled workers in construction, tourism, manufacturing, transport and agriculture, while many graduates were unable to find jobs in their fields.

He called for greater investment in universities and technical and vocational education and training (TVET) to better align education with the country's workforce needs.

Mr Chand said Fiji needed stronger incentives to retain skilled workers instead of losing them to countries offering higher wages.