Finance Minister, Renganaden Padayachy delivered on Friday evening the much awaited delicate task of presenting his second budget for financial year 2021-2022, heavily marked by the impacts of the Covid-19 pandemic.
At a press conference held a few minutes after Mr. Padayachy read his budget speech, Prime Minister Pravind Jugnauth, hailed the measures announced in the yearly financial exercise as the way the Mauritian economy will continue to sustain itself despite uncertainties provoked by the pandemic at a global level.
“We all know what we have been going through since last year with the pandemic. Economy and society are both under pressure. It was important for this budget to take into account our current situation and come up with the right measures,” Mr. Jugnauth said.
He explained that the budget focuses essentially on four areas that include continued support to the people for a better quality of life, public welfare, support to industries and the economic reboot.
According to Mr. Padayachy, budget 2021-2022 is about recovery, revival and resilience. In the upcoming financial year, government intends to pour in an investment to the tune of Rs 65 billion in a number of priority projects over the next three years. A National Flood Management Programme will require some Rs 11.7 billion while Rs 12 billion has been earmarked for the construction of 12,000 social housing units.
Moreover, an amount of Rs 4 billion will be diverted to the Economic Recovery Programme. Community development projects will be financed through an envelope of Rs 5.7 billion. Some Rs 22 billion, representing the largest chunk of the Rs 65 billion, has been earmarked for land transport projects including roads and the Metro Express.
A major project where government is to pump in some Rs 9.4 billion during the financial year is the construction of a dam and treatment plants at Riviere des Anguilles.
It could be felt right from the start that the government played hard to balance social needs and investing in new development infrastructure. For instance, government announced it will refund up to Rs 500,000 of the cost of acquisition of any residence or land in the country and the construction cost of a house.
Government is also extending the subsidy on the price of white flour for 25 kg bags to Rs 155.50 for one additional year to maintain the retail price of bread of the Pain Maison.
