If They were Minister of Finance : their Top Five Priorities 

Economic development, social development, creation of employment and education are the main axes that our speakers would have focused on if they would have been presenting the upcoming Budget on 14th June 2018.

Among the other priorities of Kugan Parapen, Vasant Bunwaree, Xavier-Luc Duval, Pierre Dinan, Dr Tulsidas Naraidoo and Lindsay Rivière are the review of free transport, assessment of taxation, reduce cost of fuel, limit wastage and improve connectivity in African countries, among others.

Xavier-Luc Duval

The Leader of Opposition and former Finance Minister (2011-2014) focuses more on improving the public service and institutions. 

Improve public service

Our public service needs great improvement. There is no need to inject just millions or billions but there is need to address the serious issues within our public service. Whether it is education, environment or service to the public, I would have concentrated on improving these services.

Developmental projects

Only economic projects are not sufficient. The various institutions need to ensure that there are continuous developments in the country. For instance, for this Budget, I would like to see measures in our law and order as well as security.

If we want to promote our tourism industry, security is important. Moreover, for a better development, our health sector needs to be looked into. I would also wish to see more independence for institutions like FSC and FIU. There should be more equal opportunities in our society. These measures will give a boost to our economy.

Improve connectivity with African countries 

Through this budget, I would have increased our connectivity with the African region, looked for real partners to make Mauritius an education hub and a centre for transformation. Moreover, why not benefit from African products such as medical supplies, cocoa or coffee? Through this Budget, let us make Mauritius a real hub in the African region.

Air and Maritime connectivity 

Both air and maritime connectivity are important factors for improving the economy. I would have reviewed the monopoly of our air connectivity. There is no reason to continue monopolising it. I would have also worked on our maritime connectivity.

Improve tertiary education 

Our ranking in Africa is frightening. One of our universities is ranked at 69th and another one at 300th.  So, I would have seized this opportunity to improve our tertiary education. I would have tried to understand the shortages and understand why our universities are not performing at the level they should. This would certainly improve our employability rate and allow our young generation to get a job they like.

Dr Tulsidas Naraidoo

Dr Tulsidas Naraidoo puts much emphasis on fuel reduction and imposing tax rate for better equity in the social arena. 

Reduce cost of fuel

First and foremost, I would have seized this opportunity to reduce the cost of fuel, which is causing social unrest in the country. Instead of blaming the Ministry of Commerce for this increase, it is better to take measures which will ease the suffering of the population.

Review free transport system

We should have a policy to review the free transport system as a whole. Only students who do not have the necessary means to pay for transport should have this privilege and it is the Social Security which should assume the responsibility. For the elderly, free transport should not be allowed during peak hours.

Subsidizing fertilizers and equipment

I would have revamped and boosted the agricultural sector by subsidizing fertilizers and various types of equipment. This would have boosted production, reduced our imports and subsequently created a positive effect on balance of payment.

Review banking loans 

There is no doubt that our banks are making huge profits. In many countries including Africa, banks provide support to SMEs through loans and incentives. In Mauritius, we need to review this side. I would like to encourage banks to take minimal interest for SMEs taking loans.

This would have a positive impact on them, allowing them expand, hence creating more employment. It would also favour exports of goods.

Increase Corporate Tax Rate

Mauritius is facing a serious issue of tax evasion, unfortunately. In this context, I would prefer to implement Corporate Tax on dividends. There are countries which are not paying Corporate Tax, so this measure will force them to pay tax.

Moreover, I would also introduce a Green Tax on every company in the entire field. The benefits of this measure are multifold. Almost all the industrialized nations around the world have introduced such a tax. Why not Mauritius, which is also an industrialized country?

This will help all the companies to contribute towards alleviation of degradation of the environment, and also compel those companies evading other taxes to contribute.

Lindsay Rivière  

Political observer Lindsay Rivière argues that there are many things which need urgent attention in the economic front. 

Export 

I am quite worried that our exports capacity is going down. Our external trade deficit is around a hundred billion rupees. Our export figures only represent half of our imports. The deficit is increasing as we import more and more. This has to be seen as a major threat to our economy and is also affecting the value of the rupee. 

Strengthen our manufacturing sector and SMEs 

Our manufacturing sector, which used to carry our economy, is being degraded and is experiencing more difficulties in exporting the products. Our position is being slowly eroded by Asia and Africa. We are losing focus and not enough attention is being brought to manufacturing capacity.

I would have strengthened our manufacturing system. I would have tackled this problem and increased our capacity. It is a tragedy to see SMEs failing. A lot of people are losing money. I would have liked to set up an SME Academy. I would have promoted more training for these SMEs, as they cannot pay for high calibre marketing specialists.       

Attracting more FDI

When you look at figures, it is around1Rs 6-17 billion but most of them are for non-productive activities. The quality and nature of FDI are major causes for worrying. I would have preferred to focus on attracting more productive employment generating FDI, which is not the case today.

Agriculture and fishing sectors  

Our sugar industry is not as lucrative anymore and the whole agricultural sector is not in a position to meet our needs. We are importing sugar and other vegetables. Even in the fishing sector, we are not doing well despite having a large EPZ. 

Social housing

The recent cyclones and floods demonstrated that a real problem exists in this area. We are now aiming to be a high-income level country but we are unable to solve the issue of social housing. That is heralding a social disaster.

Pierre Dinan

Economist Pierre Dinan underlines on the importance of economic development and the need to exploit our EPZ. 

Limit wastage

Through this Budget, I would have made an engagement that every penny being spent is for something valuable. I would have focused on limiting wastage of public money. Every year, the Audit Report shows the extent money has been wasted. So, I would prefer the money to be used in a more efficient and reasonable manner.

Economic development

Our economy has been a bit stagnant since last year. So, I would have used this Budget to make a review of last year and subsequently brought measures to give a boost to the economy.

Projects like construction or infrastructural will ensure that work continues but we need more measures to tackle sectors like the sugarcane industry and textiles, both of which run the risk of disappearing.

I would have put much emphasis on creating energy through our sugarcanes. Moreover, I would have also focused on how to use our labour and capital in order to be more productive and at the same time competitive, as compared to other countries. This Budget should promote long-term projects which will serve the country.

Use of our EPZ more

We are surrounded by the sea and we have one of the largest EPZ, around 2.3 million km/square. I would have exploited this side as well, as it represents a huge economic resource for us. We need a very good strategy for an intelligent exploitation.

Social development

We are living in a violent society, where parents are being attacked; women are not being spared either. Besides, there are a handful of people who do not have enough money to buy food for their families. It is high time that in this Budget, we need to make an analysis of our society. Along with NGOs, the government must promote an inclusive society. 

Education

We need to have the best education for our young and coming generations. Our education should go further and promote skills like painting, IT, nursing, among others. I would have emphasized on know-how. This would have certainly reduced our unemployment rate.

Kugan Parapen

Economist Kugan Parpen states that his budget would have addressed the frailties of the moment while unlocking the potential of our future. 

Review the taxation system 

Many think that budgets are only about numbers and numbers but that is not totally correct. Budgets lay the foundation for the future and as such, are very important. Had I been the one calling the shots as Finance Minister, I would have implemented measures to address the current problems our society is facing as well as laid the foundations for a better future and more inclusive Mauritius.

Taxes on petroleum products are excessive and need to be addressed urgently as the purchasing power of the average Mauritian has been severely impacted. In the meantime, the economic elite’s contribution to the coffers of the State has been decreasing over the years. This trend needs to be reversed in the name of fairness and social justice.

Lay the foundations for a new tourism 

The tourism industry, as we know it, has shown its limits in recent times, as Mauritius reaches a point of saturation with respect to hotel development on our shoreline. The industry needs to be reinvented so that its expansion does not impact negatively on the quality of life of the local population.

Eco-tourism would feature prominently in a budget of mine as well as new projects across the island to showcase the Mauritian way of life and its rich history and cultural heritage. This would, in parallel, address the lack of opportunities in remote areas of Mauritius.

Make entrepreneurs a priority

Talking of reinvention, the Mauritian economy is in dire need of new pillars. In recent years, we’ve been ‘selling the family jewels’ to attain economic growth and that will have catastrophic implications in the future, especially if we do not halt such practices.

Our manufacturing industry is dying as the brain drain and nepotism continue to plague the island. Creating a vacuum that is conducive to the emergence of new industries is a necessity and empowering entrepreneurs to get the job done is a pre-requisite to embark in this avenue.

Emergency measures to reduce road mortality

Addressing the vulnerabilities of the island cannot wait, especially when lives of human beings are at stake. Making our roads safer is a must. Funds would be channeled to increase awareness around road safety as well as improve road infrastructure around the island.  

Improve the country’s resiliency to climate change

In the same vein, areas of the island which are prone to flooding should be made more secure and special attention should be paid to preserve and strengthen our fragile ecosystem.

Vasant Bunwaree

The former Finance Minister (1995-2000), Vasant Bunwaree, argues that the most important for him in this upcoming Budget is economic growth that needs to attain 4% and this will bring further developments. 

Stimulate growth 

According to experts, we will not exceed 3.9%. But there is need for us to touch the threshold of 4%. In this context, I would have preferred to work on different projects that would promote growth over the years.

There are certain sectors like the SMEs, sugar production and agricultural needs that must be reinforced and boosted. Similarly, new sectors should be encouraged and appropriate structures should be put into place.

For instance, we started with development in the aviation sector and this should be continued further. We need to move forward quite fast.

Creation and preservation of employment

It is time to remove the entire obstacle in the way for the creation of employment. Measures like Negative Income Tax and minimum wage are good but not all companies are able to abide by these measures. If they do not have enough resources, how will they pay? In this case, the Budget should make provisions for alternatives.  

Prevent increase in cost of life

Our cost of life needs to be at a reasonable acceptance level and we need to improve more. Henceforth, I would have preferred a forward thinking approach. I would have established a system whereby even if external conditions are not favourable, we are not much affected by it.

For example, during flooding, the price of vegetables increases considerably and this affects many households. The same happens with the price of petrol. I would have seized this opportunity to redress the situation. I would not have let the gap widen between the rich and the middle-class.

New social and national solidarity policy

Unfortunately, there are lot more to be done in the social arena such as eradicating drug trafficking and consumption, alcoholism and accidents, among others. We cannot let our society go towards further degradation.

So, in this Budget, I would have reviewed the current situation and come up with concrete solutions. I would have also elaborated on severe sanctions against social scourges.

Integrated training

Training in different institutions does exist in Mauritius but we are still lagging behind in our public and parastatal bodies. I would prefer to promote an integrated training system so that productivity is enhanced.