Charting out the transformative journey for the betterment of Mauritius

This was the gist of the address of the Prime Minister, Minister of Home Affairs, External Communications and National Development Unit, Minister of Finance and Economic Development, Mr Pravind Kumar Jugnauth, yesterday, during the summing up of Budget 2019-2020 debates, in the National Assembly.

The Prime Minister reiterated his deep resolve to spearhead the progress of the country through concrete actions, while highlighting that this year’s Budget is one of continuity towards the development of the economy, with a focus on improving the lives and living standards of each and every citizen in Mauritius and broadening opportunities for all, so that all citizens can fully meet their aspirations in life. 

Development of the economy

This Budget, he said, continues on this path through policies to enhance the living standards of everyone through the reduction of taxes on essential goods and personal income taxes, increase in old-age pensions and other social security allowances, and interim increase to public sector officers with regards to forthcoming salary revisions, among others.

Additionally, the Budget caters for an increase in the purchasing power of the population and the provision of various subsidies, including reduction in the price of cylinders of cooking gas and flour, and subsidies on SC and HSC exam fees. Other key measures to enhance the quality of life of the population comprise: recruitment in the civil service, increase in the annual per capita grant for teaching aids, utilities, furniture and equipment for Special Education Needs Students, and increase in maternity leave.

As regards the prepayment of external debt repayment, Prime Minister Jugnauth emphasised that this budgetary measure will save the country some Rs 400 million of interest payments yearly. He pointed out that the several amendments have been proposed to the Bank of Mauritius Act in the Finance Bill so that the priorities in the use of the Special Reserve Fund are to increase the amount paid as capital of the Bank, meet the cost of monetary policy operations, and meet repayment of central Government external debt obligations.

He also spoke of the economic policies that focus on expanding the country’s capacity to produce more and more efficiently. The Budget, he said, will deliver a GDP growth rate of 4 % in real terms, at a time when the world economy is projected to grow at a much slower pace of between 2.6 and 3 %, adding that a 4 % GDP growth for Mauritius also means a near 4 % increase in per capita income.

Furthermore, the Prime Minister pointed out that the Budget lays emphasis on boosting competitiveness through innovation and artificial intelligence to mainly avoid the middle income trap.  A key budgetary measure in this regard includes the setting up of a National Innovation and Research Fund in which a seed capital of Rs 100 million will be injected.

As regards industries that are facing difficulties including the sugar industry, the small planters, and fishermen, the Budget has ensured that the main source of income of the thousands of employees that are involved are enhanced. Measures include: payment to planters of Rs 25,000 per ton of sugar for the first 60 tons of sugar accruing; investments in some 100 sheltered farms across the island; and provision of an increase in the bad weather allowance to Fishermen, from  Rs 310 to Rs 365.

Mr Jugnauth also elaborated on the plan to further boost investments in productive sectors and added that there are significant investment projects that are currently being implemented in the country, in Rodrigues and Agalega, by both public and private sectors that will give a tremendous boost to economic growth in the future.

Enhancing environmental sustainability and the fight against corruption

Environmental sustainability, highlighted the Prime Minister, is another core focus of the Budget. Our policies and measures are exhaustive and far reaching, addressing issues of pollution, recycling, waste water management, solid waste management, preservation of our lagoons and reefs, drainage to mitigate the impact of flash floods and erosion, access to good quality water for the population and cleanliness of our living environment, he said. The Moris Nou Zoli Pei campaign, for instance, aims at ensuring a clean and sustainable environment, he observed.

With respect to the fight against corruption, he recalled that the setting up of a Financial Crime Commission to act as an apex body will ensure greater coordination and coherence among the various investigative agencies, including ICAC, the Financial Intelligence Unit and the enforcement department of the Financial Services Commission in carrying out their functions, in particular in dealing with investigations concerning drugs and corruption offences and all other financial and economic crimes.

Moreover, Prime Minister Jugnauth dwelt on Government’s commitment as regards the combat against drug traffickers, as well as its determination to bringing about the full decolonisation of Mauritius and regain the sovereignty of the Chagos Archipelago. The need to preserve the fragile social fabric of the multicultural society of Mauritius and the non-tolerance of Government as regards any communalist acts were also highlighted.