The measures and policies outlined in the Budget 2013 demonstrate Government’s unshakable determination to rise to the challenges of the world in transition, said the Vice Prime Minister, Minister of Finance and Economic Development, Mr Xavier Duval, on Friday 9 November while presenting the Budget to the National Assembly.
The Budget 2013, he explained, has been guided by a five-fold strategy:
- Embrace technology and reinforce our Africa Strategy;
- Support growth and create employment;
- Strengthen Public Services;
- Protect the vulnerable; and
- Ensure sound macroeconomic management.
Mr Duval expressed his confidence that the measures and policies announced, coupled with the resourcefulness and determination of the people, will steer the country on the path to more prosperity, higher standards of living, better public services, a cleaner environment and a more just society.
As regards the manufacturing sector, existing schemes are being improved and new ones put up to help the sector cope with the difficult economic conditions, with SMEs being taken fully on board.
To accelerate the transition to technology and reduce the digital divide, a number of innovative measures are being taken such as Internet access to a greater number at a subsidised rate and a scheme to provide Form 4 students with tablets.
A four-year action plan is being put up to reduce youth employment. This will be done through the Youth Employment Programme, the Skills Working Group, the Service to Mauritius Programme, and Industry placements.
As regards the vulnerable groups, two landmark measures are being introduced in the form of a hot meal daily for students of ZEP schools and a child allowance of Rs 750 per month per child for families earning less than Rs 6 200 monthly, subject to specified conditions.
The 2013 Budget also promotes the concept of a Cleaner and Greener Mauritius.
On the regional front, the budget outlines that Mauritius will pursue its Africa strategy by sharing its experience on democracy, governance and development; fast tracking regional integration; enlarging economic opportunities for the citizens; and acting as a catalyst for investment.
Budget Outlook
Gross Domestic Product for 2013 is forecast to grow by 4 percent in real terms. Total revenue will go up by 12.5 percent to Rs 83.3 billion, of which Rs 71.1 billion from taxes. Expenditure will increase to Rs 91.8 billion of which 11.7 billion for direct capital expenditure. The economy will grow by 3.4 percent.
In spite of foregoing revenues to support households and enterprises, the budget deficit for 2013 will continue going down to just 2.2 percent of GDP. Excluding the Rs 1.2 billion which are being transferred from the National Resilience Fund to the Budget, the deficit would still be one of the lowest at 2.6 percent.
Public sector debt is expected to decline further to 53.7 percent. Government will borrow only to invest in the future of the country. With this Mauritius will relentlessly pursue its objective of bringing public sector debt as a ratio of GDP to 50 percent by 2018.
Capital investment programme for 2013 will amount to Rs 28.6 billion, an increase of 39 percent. These heavy investments will be in the water sector, electricity, waste management, wastewater management, roads, port, airport and communication, amongst others.
“The future challenges are clear. World economic power is undergoing a seismic change. Technology is changing people’s lives and countries’ fortunes at lightning pace. Those countries that will succeed will be those that have risen to the challenges of this world in transition. And this is the theme of our Budget today”, said the Vice Prime Minister.
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