You are expected to present the 2025-2026 budget very soon. The economic condition is grim, and it is in this context that you are called upon to present a new budget, which is likely to be bitter. The lower middle class and middle class are expecting a favourable budget that can improve their quality of life. Considering the fact that the economy is facing an unprecedented crisis, the onus is on you to demonstrate your dexterity in handling the current situation efficiently.
When I heard about the so-called economic boom from the previous Minister of Finance, I heaved a sigh of relief, believing that our bad days were finally over. However, when this government revealed the true state of the economy, I was taken aback and wondered how Mr. Padayachy could have told such a blatant lie. Everyone was misled; even the opposition parties started proposing numerous social and altruistic benefits for the population. Unfortunately, things took a drastic turn when this government assumed office. The discovery of numerous financial scandals and mismanagement revealed the true state of the economy, causing great frustration among the people.
You must now take new measures to address our ailing economy, boost productivity, restore our image as a premier tourist destination, and encourage inward investment. Special attention must also be given to the shortage of staff across almost all economic sectors. Remember, our public debt is projected to reach 90% of GDP by the end of 2025, according to the IMF.
The agricultural sector, once the backbone of our economy, requires urgent attention. Every year, we import 18,000 tons of potatoes, 12,000 tons of onions, and 2,000 tons of garlic. Incentives must be provided to encourage young people to engage in this sector, thereby reducing our dependence on imports.
Furthermore, instead of providing free transport to seniors, it would be more beneficial to grant them vouchers worth around Rs 700, enabling them to purchase goods of their choice.
The annual reports from the Audit Bureau continue to reveal damning evidence of wastage and excessive spending. Establishing a special department to monitor and verify these issues is paramount. Providing appropriate training to students in various trades could also help address the shortage of human resources in our country.
Another necessary measure is to reduce the salaries of political appointees, such as chairmen and directors of public and para-statal bodies. Even the allowances paid to board members should be reviewed. Many of these political appointees are retired individuals who already receive pensions. In this critical situation, a sense of patriotism must prevail.
Price control on essential commodities is essential to increase the purchasing power of the lower and middle classes. While we understand that some price hikes are due to external factors, those within our control require close monitoring by the authorities.
We acknowledge that recovering from the inheritance of a “terre brûlée” will take time. It may take three to four years to combat inflation, strengthen the economy, and create more job opportunities. You must also discourage brain drain by motivating young people to stay and contribute to the country’s development.
The abolition of various taxes is akin to killing the goose that lays the golden eggs. You must alleviate poverty, put the economy back on track, wage a relentless fight against drug traffickers, and reduce the increasing number of horrific road accidents witnessed daily.
The ball is in your court.
Cassam Tupsy
