What impact will the 2021 Mauritius budget have?
Category Finance
The national budget is traditionally presented in June every year. The date of the presentation has not yet been confirmed by the Ministerial Cabinet yet but it will likely be around the beginning to mid-June. It is an important day followed very closely by Mauritians as it usually has quite an impact on the day-to-day life of residents. The whole exercise is traditionally carried out by the minister of Finance. Following the presentation, the measures will be debated within the parliament for a month or so and following the debates the bill implementing the measures will be voted on and the measures will be implemented.
This year's budget exercise will be followed even more closely because of the COVID-induced recession.
Investment schemes and new visas
Almost every year, new investment schemes are introduced aiming at attracting foreign investment. A sector to lookout for is real estate with new schemes being introduced to allow for the buying of houses, villas and other real estate developments like smart cities. With this government's track record, it is likely that investment schemes and measures aiming at attracting foreign investment will be at the core of an attempt to restart and boost the national economy.
Last year, the premium visa was also introduced in an attempt to attract wealthy foreigners who would live, buy immovable property and consume here but not work here. This was a particularly interesting scheme when the country was COVID-free. One of the challenges ahead of the country this year is that it does not have the appeal of a COVID-free destination anymore. However, the vaccine shots are still being offered for free for anyone residing in Mauritius.
Pre-budget consultations
Pre-budget consultations kicked off in March with stakeholders of all sectors and from NGOs and activist groups meeting with the Minister of Finance to place their demands.
Representatives from Business Mauritius, the private sector conglomerate met with the Minister of Finance on the 14th of April. Their main demand was the reopening of borders for the last semester of 2021. Stakeholders of the tourism sector also stressed the importance of reopening the borders. There were also demands for fiscal concessions to allow all sectors to invest in boosting their activity and to cater for the loss incurred during the last few months.
Other demands from various sectors have also centered around improving connectivity in the post-COVID era, whether by sea or by air.
Individual expectations
Of course, individuals will also closely follow the budget which could have major impacts on their lives. For one, the budget will directly or indirectly impact the cost of living. Furthermore, it is likely that there will be attempts at boosting the purchasing power as boosting consumption has been a strategy used by the government in the past.
Author: Expat.com