Pravind Jugnauth to chair committee on budget implementation

Parliamentary debates on Budget 2016/2017 drew to an end on Tuesday 16 August with final comments made by the leader of the opposition Paul Bérenger, the Prime Minister Sir Anerood Jugnauth and conclusions of the Minister of Finance, Pravind Jugnauth.

“The debate has been very constructive and there have been valuable suggestions that will no doubt help us to strengthen our policies and aim at even better outcomes,” were the first words of Pravind Jugnauth in concluding debates on Budget 2016/2017. Now that debates are over, the next step is for the Budget, now known as Finance Bill, to be adopted by the House.

Measures that will take effect with the passing of the Finance Bill include the removal of VAT, tax reduction on property and other fiscal incentives for the purchase and construction of a residence, raising the income tax threshold for all categories of taxpayers, increased deductions for education, and most measures announced to support the vulnerable persons and the disabled.

“I will personally chair a high level committee to oversee the monitoring and implementation of all the strategies of the Budget,” stated the Finance Minister. He also spoke of the government’s decision not to go ahead with the Heritage City project. The amount initially earmarked for that project will be reallocated to the Metro Express Project.

“To that effect, we have already made a request to Indian Government to reallocate the Rs 2.7 billion, from the grant of Rs 12.7 billion to the Metro Express Project. The Indian Government has agreed to our request,” stated Pravind Jugnauth.

According to him, Budget 2016/17 focuses on the aspirations of the youth, men and women, on micro and small businesses, on new entrepreneurs and start-ups, on lifting families out of poverty, and on strengthening the middle class. “We have prepared the Budget with the conviction that every Mauritian deserves a real and fair chance at moving up the social ladder – that every Mauritian must regain the sense of optimism in the future.”

Before the conclusion of Pravind Jugnauth, the Prime Minister in his comments stated that: “The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” Sir Anerood Jugnauth first of all had a special word for the leader of the opposition Paul Bérenger: “I have been in this august Assembly for years as Prime Minister but never before had I heard Honourable Paul Bérenger as Leader of the Opposition saying ‘It is an interesting budget’. I compliment him for the compliment.”

The Prime Minister stated that “there is no doubt therefore that the Budget has rallied the nation.” For him, the road to the Second Economic Miracle is now wide open. “We do not want growth that is only in terms of figures. We want genuine growth based on real economic output. We want growth that brings wealth and enlarges the national cake.”

The leader of the opposition was the first to take the floor on Tuesday to give a final comment on the budget. Prior to his speech, members of the PMSD and ML walked out. He had nice words for Pravind Jugnauth and sent a few darts to the latter’s predecessor, Vishnu Lutchmeenaraidoo.

“The 4.1% growth for 2016/2017 is not realistic referring to the Central Bank estimates of 3.8%,” he said, adding that the Indian government has saved the Budget with a grant of Rs 12 billion. This exercise will not relaunch the economy and create jobs. The leader of the opposition cast doubts regarding public debt levels, which he said will remain above the 60% of GDP mark.