Government’s philosophy is to give a boost to the economy, provide assistance to all sectors of activity while accelerating the country’s transition to a sustainable and inclusive development model.
This statement was made, today, by the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, during a Question and Answer Session with the press on Budget 2022-23, held at the Caudan Arts Centre, Port Louis.
At the very outset, the Minister recalled that the country has faced a challenging period, with the COVID-19 pandemic which has halted all economic activities, and the Ukraine-Russia war which is impacting the prices of goods. It is within that context that Government is providing direct support to the most vulnerable, disabled, and pensioners, he said.
Dr Padayachy dwelt on the three main pillars of the Budget 2022-23, namely economic growth, environment, and the population. As regards the economy, he underlined that it is important to strengthen the country’s economic growth and resilience to future shocks by providing assistance to all sectors of activity, by enhancing other sectors so that they become more effective, and by improving the production sector.
Speaking about the environment, the Finance Minister said that it is imperative to encourage production and supply of renewable energy and to ensure carbon neutrality in the industrial sector by 2030. The ultimate objective, he underpinned, is to utilise less petroleum products and produce more renewable energy which will subsequently lower the country’s expenditure as regards electricity.
He acknowledged that all citizens are being impacted by high inflation. To that end, he recalled that Government is implementing a series of measures aimed at assisting the population. They include: providing more support to Social Register of Mauritius beneficiaries; increase in pensions; and increase of benefits under Social Aid.
The Finance Minister added that the State Trading Corporation, in a bid to help consumers whose purchasing power is negatively impacted, is working on a series of products which will be subsidised. He also lauded the Contribution Sociale Généralisée which, he said, is a system based on solidarity and which is enabling Government to pay for the increase in the Basic Retirement Fund of pensioners. He also indicated that Government has earmarked Rs 4 billion for the payment of a direct monthly income allowance of Rs 1 000 to those earning a gross income of up to Rs 50 000.
Speaking about the public debt, Dr Padayachy stated that Government is working towards decreasing it and bringing it to less than 80%. He underlined that it is important to decrease the country’s importation of petroleum products and to encourage the use of more renewable energy which will help to decrease public debt. He also highlighted the need to encourage local agricultural production so as to decrease importation costs.
He said that the country is in a recovery phase and underlined that the tourism sector is expected to bring in some 1.4 million tourists during this financial year. According to the International Monetary Fund, Mauritius will exceed the GDP of 2019 and will reach Rs 576 billion for the year 2022-23, he added.
The Finance Minister also spoke about the abolition of the Municipal Tax and indicated that Municipal Councils will have a shortfall of Rs 300 million and added that Government will provide financial assistance.
