The Budget Speech 2023-2024, delivered by Dr. The Hon. Renganaden Padayachy has leveraged on the hard fought and remarkable economic fundamentals for the outgoing fiscal year, to re-affirm Government’s strategies and policies to maintain economic recovery and drive forward the transformation of Mauritius into a modern, sustainable and resilient country.
In continuity with previous fiscal exercises, this inclusive Budget focuses on helping families, lower-income groups, as well as businesses, without losing focus on the country’s resilience and longer-term needs in an everchanging economic and geopolitical landscape. The tax reforms are clearly the centrepiece of this year’s Budget. The restructuring of the Income Tax regime is one key and bold fiscal reform aimed at restoring the economy’s competitiveness and bringing about fairness and equity for earners. Income Tax will be imposed through the introduction of a marginal step application of the rates, leading to a reduction in total income tax paid. This reduction in income tax is expected to spur labour supply and increase consumption, thereby contributing to an increase of 0.6% in GDP and creating more than 16,000 jobs. The social side of this budget also seeks to address the spending power of a considerable tier of the population and lessen the hard-hitting impacts of inflation, with targeted support and allowances to cushion the effects of continuous increases in the costs of living. Other considerable and assertive measures have been outlined, which notably include raising the minimum salary threshold to Rs 15,000. The panoply of social measures is expected to contribute 1.2 % to GDP growth.
Here is the EDB document:
