Sanjay Matadeen: “The Minister of Finance will opt for a reallocation of expenditure in order to finance this latest Budget”

Concerning the financing of the 2024-25 Budget, what are the sources of revenue for the government?
The different types of taxes such as value added tax (VAT), income tax and other contributions, including the Generalized Social Contribution (CSG), are, among others, among the government's sources of revenue. . VAT remains the primary source of revenue for the State, followed by the CSG whose contribution is between Rs 6 billion to Rs 8 billion per year in the budget.

Notwithstanding the fact that the Minister of Finance indicated that the next Budget will target social resilience, the economy and the environment, many are banking on a populist budget in this election year. Does the government have the means to finance such a Budget?
A Budget is not just an accounting exercise. It is an economic tool to correct macroeconomic variations such as inflation, unemployment, growth or even the balance of payments. One of the main problems of Mauritius is inflation. What about unemployment, it's contrasting, because several companies are struggling to recruit even though there are unemployed people in the country. Normally, the government would have targeted a budget surplus. To answer the question, I think the priorities of the Minister of Finance will change. He will opt for a reallocation of expenses in order to finance the last budget of this mandate. There may be no new infrastructure projects in the 2024-25 budget. I assume that the government will also be able to use money from the funds, reserves or allocations for projects that have not been used.

Will the government shoot itself in the feet by targeting a drop in consumption in view of the elections?
The Budget should be used as an economic and not a political tool. However, the next financial year will be used to the government's advantage. It has rarely been an economic goal to try to bring about a balanced budget.