Government and opposition clash over economic measures

Purchasing power, the means of financing the Budget, the two-stage pension increase and climate change were the main themes discussed in the program “Le Grand Débat”, on Radio Plus, on Friday.

To discuss it, Nawaz Noorbux received the Deputy Prime Minister, Steven Obeegadoo, and his fellow ministers Fazila Jeewa-Daureeawoo and Mahen Seeruttun. The parliamentary opposition was represented by the leader of the opposition, Arvin Boolell (PTr), Reza Uteem (MMM) and the leader of the PMSD, Xavier-Luc Duval.

First to speak on the Budget, Arvin Boolell declared himself in favor of social grants, but estimated that the measures will only increase inflation, making products more expensive. “Si coud lavi diminie, mo dir wi. “But inflation can destroy all of its social welfare funds,” he said, speaking of an inflationary budget.

Steven Obeegadoo wanted to be reassuring, believing that the Mauritian economy is doing well. “The Budget confirms that the economy is on track and the outlook is excellent, as indicated by the International Monetary Fund and the World Bank. The Budget also highlights the fundamental change in the country's development policy,” said the Deputy PM.

Purchasing power

Xavier-Luc Duval estimated that purchasing power could be improved through parallel importation, which will promote competition in the import and distribution sector, thus having a positive impact on prices. MMM MP Reza Uteem will say the rupee could be stabilized through an increase in exports and a decrease in imports.

For this, the purple MP proposed to take advantage of favorable agreements and treaties with India, China and African countries to attract more investors.
The No. 2 of the government also spoke of the subsidy granted on basic products such as rice, flour and household gas. Steven Obeegadoo, however, recognizes the limits of government. “There are things the government can't do, like stopping prices from going up or bringing all prices down. This does not depend on the goodwill of the government. But we can make an effort of solidarity by supporting the population with purchasing power,” he added.

Budget financing

Steven Obeegadoo argues that the Budget will be financed by stronger growth, thus making the debt manageable and freeing up resources for measures in favor of the most vulnerable, while offsetting the effects of inflation and the depreciation of the rupee .

For Reza Uteem, the Budget will be financed with Rs 30 billion in additional taxes and Rs 45 billion in debt. “It is not growth that will finance the Budget, it is taxes and the public debt,” he said.

Climate change

On the theme of climate change, PMSD leader Xavier-Luc Duval will say that spending should be directed towards adaptation projects rather than mitigation projects. He called for the flood zone report to be made public. Arvin Boolell believes that we need to establish a roadmap in this direction and emphasize the circular economy. He spoke of “poor planning” surrounding the Metro Express project in Quatre-Bornes, with consequences for natural drains.

Minister Mahen Seeruttun, for his part, spoke of the difficulties behind the implementation of projects, both financially and in terms of land acquisition, sometimes requiring long procedures.

Pension

Would paying the pension in two stages be an electoral strategy? To this question, the Minister of Social Security, Fazila Jeewa-Daureeawoo, will say that it is a government decision that “everyone can interpret in their own way”. However, she reassured that the Prime Minister is a man of his word who will do what he says.

MP Uteem then deplored the lack of logic behind such a decision. “If the government has the means to pay the Rs 15,000, why not do it now? » he asked.