Budget 2020-2021 : Towards a more equitable distribution of wealth

GIS – 17 June 2020 : Budget 2020-2021 lays emphasis on a more equitable distribution of
wealth, said the Minister of Finance, Economic Planning and Development, Dr
Renganaden Padayachy, yesterday, at the National Assembly, during his speech at
the closing of the parliamentary debates.

He highlighted that the focus is on preparing for the post-Covid-19
period without sacrificing public finances while promoting social justice,
economic prosperity and sustainable development.

To that end, he pointed out that the government has directly assisted
more than 460,000 individuals through the implementation of measures such as
the Wage Assistance Scheme for employees earning up to Rs 50,000, and the
Self-Employed Assistance Scheme, relieving the self-employed and the informal
sector. In addition, the Bank of Mauritius Support Programme and the Business
Support Plan have been instrumental in assisting firms in difficulty, he said.

Strategic thrusts for a robust
recovery of investment and the economy

Referring to the main strategic thrusts of the Budget 2020-2021, Dr
Padayachy insisted that the Plan for the Relaunch of Investment and the Economy
has a short-term objective of safeguarding employment and the economic fabric
coupled with a long-term strategic investment objective.

The main measures of this recovery plan are:

– Injection of Rs 100 billion to the Investment and Economic Recovery
Plan which will help revive the traditional sectors of the economy, and facilitate
the emergence of new areas of activity.

– Construction of 12,000 social housing units over the next three years.

– Investment of more than Rs 40 billion in major infrastructure projects
including the development of new community spaces, the construction of dams,
roads and bridges, the development of port infrastructure, and the completion
of the metro on the Rose Hill-Curepipe segment.

– Establishment of the Mauritius Investment Corporation to support
viable Mauritian enterprises in difficulty, to promote food and pharmaceutical
production for self-sufficiency, and to invest in projects of strategic
importance to the country.

– Provision of Rs 20 billion to support small and medium enterprises and
vulnerable households.

– Provision of Rs 10 billion by the Development Bank of Mauritius to
support small and medium enterprises through preferential rates at 0.5 percent
per annum.

Reforms for more social justice

Speaking about social justice reforms, Dr Padayachy dwelt on two
important elements that have an impact on the pension system, including the
demographic phenomenon of the ageing of the Mauritian population and the ratio
of the active population to the retired population, which is drastically

Universal Basic Pension

He recalled that the number of citizens over 60 years of age is expected
to almost double in the coming decades, from 226,000 in 2019 to 410,000 in
2068. The number of people of working age is inevitably expected to fall from
825,000 in 2019 to 395,000 in 2100, a decrease of more than 50%, he said.

Thus the universal pension will be maintained at Rs 9,000 per month for
every citizen over the age of 60. From now on, all increases in benefits for
seniors will be paid from the normal retirement age of 65.

General Social Contribution

With regard to the General Social Contribution (CSG), the Minister of
Finance, Economic Planning and Development has specified that this change in
operation will make our system fairer, more equitable and more collective.
Thus, from 1 September 2020, the new contributions from the National Pensions
Fund (NPF) will be abolished.

Under the new system, as of 1 September 2020, employees and employers in
the private sector as well as the self-employed will be legally obliged to
contribute to the CSG. For basic salaries up to Rs 50,000, the employees’
contribution will be 1.5% and the employers’ contribution will be 3%. For basic
salaries above Rs 50,000 per month, the employee’s contribution will be 3% and
that of the employer’s 6%.

Solidarity Levy

regards the change in Solidarity Levy, Dr Padayachy pointed out that those with
very high incomes will be called upon to contribute more actively in the
economic development of the country, thus reducing inequalities, especially in
the current economic context.

Government Information Service, Prime Minister’s Office, Level
6, New Government Centre, Port Louis, Mauritius. Email:
[email protected]  Website: http://gis.govmu.org  Mobile App:
Search Gov

Source link

0 Reviews

Write a Review

Read Previous

À Rodrigues : 45 plantes de cannabis déracinées

Read Next

Bank Officer Grade I