Budget Brief 2023-2024
In his 4th and penultimate budget of the current Government mandate, Dr The Honourable Renganaden Padayachy, Minister of Finance, Economic Planning & Development, presented his Budget entitled “To Dare & to Care” with a strong flavour of socioeconomic measures aimed to instill a feel good sentiment amongst the broad population.
With an annual headline inflation rate of around 11% at the end of April 2023 and fuel prices at an all-time high, along with interest rates on an upward swing, the Mauritian population needed a caring touch from the government. An array of supporting measures were infused into the Minister's Budget speech, such as the extension of the CSG monthly income allowance up to Rs. 2,000, monthly allowances of Rs. 2,000 for children up to 3 years old, a monthly allowance of Rs. 1,000 for individuals who have contracted loans up to Rs. 5 million for the purchase of their home, fully subsidized pediatric care to children up to 17 years old (treated locally and abroad), to name a few.
Additionally, the minimum wage was raised to Rs. 15,000 monthly, higher pension benefits were implemented, elimination of the special levy on higher income bracket, a harmonization of income tax rate progressing from 0% to 20% and last but not least, the much-awaited cut in petrol prices from Rs. 74.10 to Rs. 69.00 per litre (6.9% reduction).
The Mauritian economy posted better than forecasted growth in 2022 with GDP growth at 8.7% and debt to GDP contained at 79%. Unemployment rate dropped from 9.1% to 7.7%. In this backdrop of positive performances, the Minister set the scene to strengthen the foundations of the economy and transform Mauritius into a sustainable future through a series of initiatives to support the main pillars of the economy namely manufacturing (investment tax credit extension for the next 3 years), construction (infrastructural development, low-cost housing units), encouraging the entrepreneur spirit through a foray of measures to produce locally, promoting green initiatives (e.g 30% subsidy of up to Rs. 3.5 million for purchase of electric buses) and encourage the transition of the economy towards a neutral carbon footprint.
Fiscal year 2023 from the Minister’s forecast would be as promising as 2022 with GDP growth oscillating around 8% and debt to GDP to fall to 71.5%. Total expenditure in this budget would amount to Rs. 200 billion and revenue reaching Rs. 179 billion; budget deficit contained at a manageable 2.9% deficit.
Read budget brief for 2023-2024 here.
