Republic of Mauritius

BUDGET
SPEECH
2020 - 2021
Our New Normal
The Economy of Life

Dr the Hon Renganaden Padayachy

Minister of Finance, Economic Planning
and Development
 Budget Speech 2020-2021

Our New Normal: The Economy of Life

Mr Speaker, Sir,

1. I move that the Appropriation 2020-2021 Bill No. 3 of 2020 be read a

second time.

2. Mr Speaker, Sir, I am presenting the National Budget at a time of

unprecedented crisis.

3. Without any doubt, one of the worst in modern history.

4. Yet, just a few months ago no one would have imagined that we
would be faced with such a calamity.

5. That nearly half of the population worldwide would be confined in their

homes.

6. That airplanes would be grounded, that schools would be closed, that

Work from Home would become the norm, that the doors to places of
worship and entertainment would be closed.

7. That our daily life would be put on hold.

8. It is premature to predict if ever the world will be back to what we

once knew, and considered as normal.

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Mr Speaker, Sir,

9. A deep contraction, globally and locally, is unfolding before our eyes.

10. This is what international and local institutions are predicting.

11. But none of them are able to forecast today, with confidence, the
depth and the duration of this contraction.

12. As at today, the IMF is forecasting that the world GDP, in its
best-case scenario, would contract by around 3 percent in 2020.

13. According to the ILO, the impact on the global world of work will be
far-reaching, pushing millions of people into unemployment.

14. Mauritius has not been spared.

15. The fallout on our economy is without comparison.

16. Latest forecasts point to a GDP contraction of up to 11 percent this

year, the worst GDP contraction ever for our country.

Mr Speaker, Sir,

17. In these unknown unknowns, what remains constant is the

commitment of this Government towards its people.

18. Today, I will unveil before this House our strategy.

19. The challenge is daunting, but, our response is nothing but historical.

20. We will, as a nation, rise up together to this New Normal.

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21. Our “New Normal” will be the Economy of Life. That is why this
Budget is focusing on the following tryptic:

A. Rolling out the ‘Plan de Relance de l’investissement et de

l’économie’.

B. Engaging in Major Structural Reforms.

C. Securing Sustainable and Inclusive Development.

A. ROLLING OUT OUR PLAN DE RELANCE DE L’INVESTISSEMENT

ET DE L’ECONOMIE

Mr Speaker, Sir,

22. We must protect the jobs of thousands of men and women.

23. We must secure the means of livelihood for thousands of small

businesses.

24. We have earmarked more than Rs 100 Billion in this Budget for our
Plan de Relance de L’Investissement et de l’Economie. This will
enable us to -

(a) give a boost to the construction sector;

(b) go back to basics with investment in smart agriculture;

(c) rebuild our local manufacturing fabric;

(d) support our tourism industry;

(e) consolidate our financial services sector;

(f) stimulate the development of data economy;

(g) diversify and deepen the blue economy value-chain;

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 (h) build a strong biomedical and pharmaceutical industry;

(i) reinforce our regional partnerships; and

(j) foster entrepreneurship and protect the livelihood of SMEs.

Reviving our Traditional Sectors

Mr Speaker, Sir,

25. In our economic recovery plan, we will start by reviving our traditional
sectors.

Construction Sector

26. The construction industry will be the engine of our recovery.

27. First, we are providing Rs 12 billion for the construction of

12,000 social housing units across the whole island.

28. Second, the Rivière des Anguilles dam will be constructed at an

estimated cost of around Rs 7.5 billion.

29. Third, investment of around Rs 6 billion are expected in the main bus
terminals along the Port Louis – Curepipe corridor into multi-modal
Urban Terminals.

30. Fourth, we are providing some Rs 5.2 billion for the construction of
new roads and bridges.

31. Fifth, another Rs 5 billion is being provided for the completion of the
Metro System from Rose Hill to Curepipe.

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32. Sixth, the bus terminals modernisation programme will be extended to
other main agglomerations of the country, starting with Flacq, St
Pierre, Mahebourg and Rivière du Rempart with the participation of
the private sector who will invest some Rs 3.2 billion over the next
3 years.

33. Seventh, some Rs 2.2 billion will be invested in a Breakwater, Fishing

Port and the Cruise Terminal Building.

34. We will also stimulate private investment, including in the construction

sector.

35. There are currently some 34 projects in the pipeline at the EDB worth
some sixty-two billion rupees. A High-Level Committee chaired by the
Prime Minister will be set up to expedite processing and approvals of
these projects.

36. Government will further incentivise the construction industry by -

(a) Waiving fees related to the Building and Land Use Permit
(BLUP) for construction of pharmaceutical manufacturing
factories, food processing plants and warehouses.

(b) Facilitating purchases of immovable properties by foreign

buyers through digital Power of Attorney.

(c) Extending the Construction of Housing Estate Scheme and

Acquisition of Newly Built Dwellings Scheme for another
period of two years; and also raising the eligibility threshold
under these schemes from 6 to 7 million rupees.

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37. We will allow for payment of VAT as from the date of receipt instead
of the date of invoice for Government contracts in relation to
construction works.

38. For Government projects of up to Rs 300 Million, contractors will be

paid within a shorter period of 28 days instead of 56 days currently.
Any retention amount will be paid fully within six months instead of
twelve months.

39. The Construction Industry Development Board Act will be amended to

review the grading of contractors.

40. As we stimulate construction, we have the will and the means to

promote our local expertise, favour input from local firms and ensure
that the employment created can be taken up by Mauritians.

41. Henceforth, public projects with investments of less than

Rs 300 million and where pre-qualification is not required by Central
Procurement Board, will be opened to Mauritian companies only.

Agricultural Sector – Back to Basics

Mr Speaker, Sir,

42. Our economic recovery plan also extends support to the other
traditional sectors besides construction.

43. One of the early lessons of the Covid-19 crisis is the need to be as
self-sufficient as possible in what we consume.

44. We have the means, the land and the expertise today to become
more independent in our food supplies.

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45. I am therefore announcing the inception of a comprehensive
National Agri-Food Development Programme.

46. This programme will promote the Farm to Fork concept, ensure food
security and reduce our dependence on imports.

47. To achieve so, we need to bring more land under cultivation.

48. A centralised digital Land Bank of State and Private Agricultural Land
will be set-up under Landscope Mauritius Ltd and be made publicly
accessible.

49. It will operate as a platform to match demand and supply for land that
can be used for food production.

50. Upon approval of Landscope Mauritius Ltd, a small planter, having up

to 10 acres of agricultural land will be allowed to convert up to
10 percent of his land for residential or commercial purpose.

51. There are currently some 20,000 acres of abandoned land which will
be put on the platform for immediate use.

52. Landscope Mauritius Ltd will have a new mandate to acquire more
private agricultural lands with the support of the State Investment
Corporation (SIC).

53. The Food and Agricultural Research & Extension Institute (FAREI)
will develop the necessary standards and norms for production,
storage, transformation and commercialisation of superfoods.

54. The Agricultural Marketing Board Act will be amended to broaden the
role and functions of the Agricultural Marketing Board (AMB).

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55. This institution will, among others-

(a) Prepare and implement a production plan for strategic food

crops based on local demand;

(b) Manage the National Wholesale Market for fruits and

vegetables before end of 2020;

(c) Establish a price guarantee mechanism for producers to

earn a sustainable flow of income;

(d) Invest in regional storage facilities to improve on-shelf life

for seasonal crops such as tomatoes;

(e) Engage with local firms for agro-processing; and

(f) Ensure availability of quality seeds and develop new crop

varieties.

56. We will also give further technical support to small planters to allow
them to participate fully in the National Agri-Food Development
Programme.

57. To boost the production of potatoes and onions, we will increase the
subsidy for the purchase of seeds from Rs 5,000 per ton to
Rs 25,000.

58. Moreover, Government will waive the payment of the annual premium
in respect of the Crop Loss Compensation Scheme operated by the
Small Farmers Welfare Fund.

59. Under the Fruit Protection Scheme, a grant of 50% of the cost of
permanent netting structures will be provided to orchard owners.

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60. For distressed companies affected directly by the Covid-19 pandemic
in the agricultural sector, the Development Bank of Mauritius (DBM)
will provide loans at the concessional rate of 0.5 percent per annum.

Mr Speaker, Sir,

61. The sugar cane planters will need our continued support.

62. For crop 2020, Government will ensure that planters receive a
guaranteed price of Rs 25,000 per ton for the first 60 tons of sugar.

63. The insurance premium payable to the Sugar Insurance Fund Board
by planters producing up to 60 tons of sugar will be waived for
Crop 2020.

64. The Mauritius Cane Industry Authority (MCIA) will meet the shortfall
arising from the suspension of CESS payments for Crop 2020.

65. The Cane Replantation Programme will be maintained to encourage

planters to bring back land under sugarcane cultivation.

66. The rate of customs duty on imported sugar will be increased from
80% to 100%.

Manufacturing Sector- Expanding our Local Manufacturing Fabric

Mr Speaker Sir,

67. The manufacturing sector is a pillar of our economy and we need to

build on that.

68. We will foster a Buy Mauritian program, one which favours local
entrepreneurship and industrial development.

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69. We will thus enact appropriate legislations and impose quotas where
needed to protect and promote the ‘Made in Mauritius’ brand.

70. We will impose a minimum shelf space of 10 percent for locally

manufactured goods in supermarkets.

71. Ministries and Government Bodies will be required to have a

minimum domestic content of 30 percent in their purchases of goods,
wherever possible.

72. We will also provide for a Margin of Preference of 20 percent on

public purchases to all local manufacturing companies and 30 percent
for manufacturing SMEs.

Mr Speaker, Sir,

73. Manufacturing calls for new production lines, new processes, new
R&D and new technologies.

74. The investment tax credit of 15 percent over 3 years will be extended
to all manufacturing companies.

75. We will provide a double deduction on the cost of acquisition of

patents and franchises and also the costs incurred to comply with
international quality standards and norms.

76. ISP Ltd will financially support enterprises producing hygienic goods
such as sanitizers, PPEs, masks, handwash, and medical devices.

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Export Sector – A Paradigm Shift

Mr Speaker Sir,

77. We also require a paradigm shift in our export strategy.

78. Port dues and terminal handling charges for exports will be waived
from July to December 2020 and reduced by 50% for the period
January to June 2021.

79. We are extending the Freight Rebate Scheme for exports to Africa;
and the Trade Promotion and Marketing Scheme for exports to
Japan, Australia, Canada and the Middle East.

80. The Export Credit Insurance Scheme will be extended to cover all our
exports.

81. Government will support the first two years of operation of a “Made in
Mauritius” warehouse set-up in Tanzania and Mozambique.

82. To foster the transformation of the textile industry, a reputable

international firm will conduct a comprehensive review of our export
model.

83. Companies will benefit from a 50 percent refund on the costs of

certification, testing and accreditation of local laboratories.

84. They will also be exempted from the payment of registration duty and
land transfer tax for the purchase of immovable property.

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Support to our Tourism Sector

Mr Speaker, Sir,

85. The tourism industry has come to a complete stop.

86. To kick-start the recovery process in this industry, Government will

take the following measures.

87. A protocol will be established to ensure all sanitary precautions from

arrival to departure.

88. Moreover, to maintain the competitiveness of the industry -

(a) Support will be provided to our national carrier.

(b) The MTPA and EDB will develop a new tourism branding
strategy.

(c) Furthermore, we will enter a commercial partnership with

the Liverpool Football Club (LFC) for the promotion of the
Mauritius destination, starting this September 2020.

89. We will introduce the Aparthotels Scheme to enable existing hotels to

convert part of their accommodation units into serviced apartments
that can be sold individually.

90. The Invest Hotel Scheme will allow owners to occupy their units for a
total period of 90 days instead of 45 days in a year.

91. To attract High Net Worth tourists, special arrangements will be made
at the airport to accommodate visitors coming in private jets.

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92. MTPA will organise major events in Mauritius where various tour
operators, travel agents and international press will be invited to
experience our tourism industry.

93. To further help operators in the tourism sector -

(a) The licensees of Tourism Authority and Beach Authority

will be exempted from payment of licence fee for a period
of two years.

(b) The rental payment of state lands for hotels will be waived
for the upcoming financial year.

(c) The Hotel Reconstruction and Renovation Scheme rebate

of 50 % on rental of state lands for hotels will be increased
to 100% for two years up to 30 June 2022.

(d) Up to December 2021, companies operating under the

Deferred Duty and Tax Scheme as well as the Mauritius
Duty Free Paradise will be allowed to sell their goods on
the local market, provided they pay the taxes.

Enhancing our Financial Services Sector

Mr Speaker, Sir,

94. Our financial services sector is facing a number of challenges

requiring fundamental reforms.

95. Our utmost priority is to continue ensuring compliance of our

jurisdiction with recommended international best practices and norms.

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FATF Action Plan

96. Government is committed to completing the five remaining

recommendations under the Financial Action Task Force (FATF)
Action Plan for Mauritius by September 2020.

97. To comply with these 5 recommendations, we will implement the

following measures:

(a) Risk-based supervisions in accordance with the

recommendations of the FATF;

(b) Targeted outreach programmes to promote clear

understanding of money-laundering and terrorist financing
risks;

(c) Increased reporting of suspicious transactions;

(d) Targeted financial sanctions in cases of terrorist

financing; and

(e) Timely access to beneficial ownership information.

98. Furthermore, a new AML/CFT (Miscellaneous Provisions) Bill will be

introduced to complement existing legislative framework.

99. A dedicated and specialised Financial Offences Court will also be set
up.

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Diversifying our Financial Services Sector

100. To further enhance competitiveness of the Financial Services Sector,

the following new products will be introduced in line with the
recommendations of the 10-Year Blueprint.

(a) The Central Bank digital currency.

(b) An Insurance Wrapper.

(c) Variable Capital Companies.

(d) An inaugural Sukuk issuance by the Bank of Mauritius.

(e) Green and Blue Bond frameworks by the

Bank of Mauritius.

101. The Bank of Mauritius will also come up with new frameworks for
digital banking, private banking and wealth management by banks.

102. Moreover, a dedicated Venture Capital Market will be set up at the

Stock Exchange of Mauritius for start-ups and SMEs.

Mr Speaker, Sir,

Creative and Cultural Sector

103. Arts and Culture are key elements of a strong social fabric.

104. To expand opportunities for our local artists, we will provide -

(a) Rs 19 Million to finance the COVID-19 Action Plan 2020 to

support the production of virtual concerts; and

(b) Rs 15 Million to finance events under a Calendrier Culturel.

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105. An amount of Rs 35 Million is being earmarked for the preservation
and rehabilitation of historical and cultural sites.

106. An expression of interest will be launched to develop an Art District in

Port-Louis.

107. Moreover, strategic public places will be opened up for busking,

art installations and for performing arts.

108. The EDB and the National Art Gallery will create an Online Fine Art
Gallery to host art exhibitions and facilitate sales to the public.

109. Space will be made available at the Multi-sports Complex at Côte

d’Or for fine art exhibitions and for performing art events.

110. An Art Festival will be organised on the weekend of the

National Music Day 2021 to provide a platform to our artists to display
their talents.

Facilitating Emergence of New Sectors

Mr Speaker, Sir,

111. Our economic recovery plan is also about propelling Mauritius into the
era of innovation and new technologies.

112. This is a sine-qua-non condition for putting our economy on a higher

growth path.

113. The world is changing and we can no longer wait for others to drive
innovation for us nor can we wait for them to react to global changes.

114. We are now taking the reins and leading our nation towards a new
horizon that is prepared for any eventuality.

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115. For this, we need a game changer.

116. This is our vision for the future - a Mauritius driven by data
technology.

Côte d’Or Data Technology Park

117. Indeed, today I am announcing a new Data Technology Park at

Côte d’Or.

118. This Park, based on knowledge and skills, will lay the foundation for a
data driven economy and would create the right eco-system to
accelerate the innovation process from idea to creation.

119. The Park will encompass 12 highly skilled and specialised centres
from additive manufacturing to deep artificial intelligence.

120. This Park will endow Mauritius with a Carbon Neutral Green Certified
Tier 4 Data Centre.

121. The Deep Artificial Intelligence Centre will provide the necessary
support for start-ups, existing businesses and government services to
achieve a major digital transformation.

Pharmaceutical Industry

Mr Speaker, Sir,

122. The pandemic has proved the importance of having a full-fledged

pharmaceutical sector.

123. To this end, the Mauritius Investment Corporation Ltd (MIC) will invest
in the production of pharmaceutical products, medical devices and
personal protective equipment through a public-private enterprise.

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124. To ensure conformity with international norms and standards, a
Medical Products Regulatory Authority Bill will be introduced.

125. To bring more research and development in Mauritius, registration

duty on acquisition of immovable property in the life sciences sector
will be waived.

126. Medical R&D centres will benefit from VAT exemption on construction
materials and specialised equipment, and double deduction on
R&D expenditures.

127. The Human Tissue Act will be fully proclaimed.

128. A regulatory framework will be set up for telemedicine platforms.

Blue Economy

Mr Speaker, Sir,

129. We will also further unlock the potential of the blue economy.

130. To develop the fishing industry, the MIC will invest in joint ventures
engaged in fishing activities and its value chain.

131. An inland aquaculture scheme will be introduced with the following

incentives:

(a) an 8-year tax holiday; and

(b) duty and VAT exemption on equipment.

132. The daily rate of the bad weather allowance to fishermen will be
increased from Rs 365 to Rs 425.

133. Ship registration is another segment of the blue economy.

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134. In this context, a single licence for chartered yacht calls in Mauritius
will be introduced encompassing multiple berthing options, rights for
helicopter flights and gaming.

Africa

Mr Speaker Sir,

135. Africa is our future.

136. It is hand in hand that our socio-economic pathway will be written.

137. Our Economic Recovery plan thus also focuses on reinforcing our
partnerships with the rest of Africa.

138. The MIC has earmarked Rs 10 billion to invest in African projects,

including SEZ projects under a G2G framework.

Fostering Entrepreneurship and Ideas

Mr Speaker, Sir

139. Both our recovery and the future growth will be built on a strong
commitment towards an inclusive economy and society.

140. One which supports entrepreneurship, creativity and ideas.

141. DBM Ltd has earmarked Rs 10 billion to support distressed SMEs

and Cooperative Societies.

142. The DBM will provide loans of up to Rs 10 million per enterprise at a

concessional rate of 0.5 percent per annum.

143. In the same vein, DBM will provide loan facilities to taxi operators
based at hotels.

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144. Furthermore, to encourage local production, I am increasing the
one-off grant towards certification under ‘Made in Moris’ label from
Rs 5,000 to a maximum of Rs 50,000.

145. SMEs holding the ‘Made in Moris’ label will benefit from a
Margin of Preference of 40 percent instead of 30 percent under
Public Procurement.

146. A Technology and Innovation Fund will be created to invest up to

Rs 2 million as equity in projects recommended by Mauritius
Research and Innovation Council.

147. To promote a culture of entrepreneurship among our university

students, DBM Ltd will scale up its Campus Entrepreneur Challenge
competition. The first 10 best projects will be financed at a
concessional rate of 0.5 percent per annum for an amount of up to
Rs 500,000.

Mr Speaker, Sir,

148. To ease cash flow of SMEs, we will encourage the broadening of

access to factoring facilities through Maubank.

149. The ISP Ltd will subsidise fifty percent of the factoring fee per invoice
for SMEs.

150. The Procurement Policy Office will require Public Bodies to procure
specific goods and services from SMEs only.

151. Public Bodies will pay SMEs within 14 days from date of invoices in
respect of supply of goods and services.

152. SMEs and cooperative societies will benefit from a grant of 15 percent
on cost of assets of up to a maximum of Rs 150,000 under the
DBM Enterprise Modernisation Scheme.

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153. With a view to boosting local production, the Cooperatives
Development Fund will provide a grant of up to Rs 50,000 to
cooperative societies for:

(a) the purchase of livestock; and

(b) acquisition of equipment involved in the production of food

items.

B. ENGAGING IN STRUCTURAL REFORMS

Mr Speaker, Sir,

154. Let me now come to our reform agenda.

155. The status quo is no longer an option

156. The Covid-19 crisis reminds us of the urgency to conduct

wide-ranging structural reforms across our economy and society.

157. Founded on the principles of inclusiveness, sustainability, and

efficiency, this Budget will help to shape the future of Mauritius.

A Sustainable Pension System

158. The pandemic has changed the lives and livelihoods of billions of
citizens worldwide, and our country has not been spared.

159. We are no longer in an era of endless growth.

160. And our demographic trend, with an ageing and decreasing

population, as underlined by various international institutions, make
our pension system unsustainable for the future.

161. We need to act and we need to act today.

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162. We are therefore proposing a pension reform which is fair, equitable
and sustainable for our economy.

163. We are maintaining and guaranteeing the Basic Retirement Pension

(BRP) to all individuals at the age of 60 years and above.

164. This universal monthly benefit of Rs 9,000 will continue to be paid to

each and every one.

Mr Speaker, Sir,

165. Henceforth, all increases in benefits to our elderly will be paid through
a completely new mechanism.

166. We are introducing a contributory, participative and collective system,

the Contribution Sociale Généralisée (CSG).

167. This will ensure an additional guaranteed monthly income to citizens

above the normal retirement age of 65 years old.

168. The first payment of benefits under the CSG will be in July 2023.

169. Under this new system which will be effective as from

st
1 September 2020, employees earning up to Rs 50,000 monthly, will
contribute 1.5% and their employers 3% on monthly salary.

170. For employees earning more than Rs 50,000 monthly, the

contribution will be 3% and that of employers 6% of monthly salary.

171. This new system will also include self-employed individuals.

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Mr Speaker, Sir,

172. As a result of this reform, we are abolishing the contribution to the

National Pension Fund, while continuing to pay benefits to each and
every one who has previously contributed to the NPF Fund.

173. We are abolishing the NPF as it is not only unsustainable but also
unfair and regressive.

174. Under the NPF, an employee contributes 3% of his basic salary and
the employer 6%. The rate of contribution is applied on a ceiling of
Rs 18,740, irrespective of the basic salary.

175. That is, if an employee earns the minimum wage, he currently

contributes Rs 306 monthly, that is 3% of his basic salary.

176. If an employee earns Rs 1,000,000 monthly, Mr Speaker, Sir, he

contributes Rs 562 that is less than 0.06 percent of his salary.

177. This shows how unfair is the NPF system.

178. Under the Contribution Sociale Generalisee, we will thus move

towards a more progressive system of contribution which will benefit
those at the lower-end of the ladder as well as SMEs.

179. It is a contributory, participative and collective system.

180. Today’s generation will contribute towards ensuring higher benefits to

our elders.

181. And tomorrow, our children will contribute to ensure that we enjoy a
decent retirement.

182. If an employee is earning the minimum wage today, instead of

contributing Rs 306 under the NPF, he will contribute only Rs 153.

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183. If an employee is earning Rs 25,000 today, instead of contributing
Rs 562 under the NPF, he will contribute only Rs 375.

184. Under this mechanism, more than 70 percent of employees will be

contributing less today and earning more tomorrow.

Mr Speaker, Sir,

185. Whilst we transform our system to make it more equitable, we are

aware that there are today tens of thousands of Mauritians working
informally as household employees, construction workers, gardeners,
helpers and carers.

186. The majority of them are unable to access the contributory pension
system and do not benefit from their years of service.

187. To this end, Mr Speaker, Sir, I am introducing the Service

Employment Cheque in Mauritius as from September 2020.

188. This measure will ensure that these workers benefit, over and above
the Basic Retirement Pension (BRP), from the CSG.

189. We are further enhancing our means to help the most vulnerable
group.

190. The practical difficulties faced in financially helping them during the
lockdown period lead us to the following:

(a) Government will facilitate the setting up of a Bank Account

for each citizen at birth.

(b) An amount of Rs 150 will be paid by Self-Employed

individuals to the CSG.

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Improving our Doing Business Environment

Mr Speaker, Sir,

191. The reforms implemented by Government to facilitate business over

the last 3 years have moved Mauritius amongst the top-ranking
economies in the world for ease of doing business.

192. Our aspiration is to be amongst the best.

193. We must ensure that when a young entrepreneur in Africa wants to

do business, he or she will think about Mauritius first.

194. We have reformed our doing business environment, and we will

continue to do so.

195. We will make it easier to create a company, operate a business, hire

talents, export to the world, and resolve commercial disputes.

196. We have to continue to facilitate business related public service

delivery. This goes through e-services.

(a) An Integrated Single Window for Trade will be

developed to connect all stakeholders within the port
community.

(b) A Maritime Single Window will be introduced by the

Mauritius Ports Authority to facilitate vessel clearances and
reduce administrative bottlenecks at the port.

(c) The Corporate and Business Registration Department

(CBRD) will become the central repository for all business
information and licences through a digital platform.

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 (d) All deeds for registration of property shall be submitted
through the Mauritius e-Registry System.

(e) We will invest in a new Land Use and Valuation

Information Management System (LAVIMS) based on
Blockchain technology.

(f) A new online system will be developed for services

delivered by the National Land Transport Authority.

(g) The implementation of the Centralised-KYC project by

the Bank of Mauritius will be expedited.

(h) The Bank of Mauritius will also upgrade the Mauritius

Credit Information Bureau (MCIB) to provide credit score of
potential borrowers.

(i) The e-Procurement System will become mandatory for all

public sector bodies.

197. We are also coming up with a series of measures to reduce cost of

doing business in the aftermath of the COVID-19 pandemic.

(a) The Mauritius Revenue Authority will regulate fees charged

by freight forwarders for Groupage cargo.

(b) The fees for re-instating companies will be reviewed

downwards from Rs 15,000 to Rs 5,000 and the
requirements for giving notice shall be done online.

(c) Application fee for a Building and Land Use Permit will be
waived.

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Opening to the World

Mr Speaker, Sir,

198. Our country is facing a major structural challenge - that of

demographic decline.

199. Alarmingly, last year, our country’s population declined for the first
time in more than 50 years.

200. If this trend is maintained, our population will fall by more than
200,000 between now and 2050.

201. We have to counter the adverse impact of this trend.

202. Economic growth should not be hindered by lack of labour nor by an

exiguous domestic market.

203. We have no choice but to open ourselves to talents, ideas and

knowledge.

204. To achieve these objectives, we are coming up with a new set of

policies.

205. Investors, professionals and retirees need visibility and certainty

before opting for a place where they may be spending a significant
part of their lives. To this end:

(a) The Work Permit and Residence Permit will be combined

into one single permit.

(b) We are lengthening the validity of an Occupation Permit

(OP) and a Residence Permit for retirees to 10 years
renewable.

(c) The minimum investment amount for obtaining an OP will

be reduced from USD 100,000 to USD 50,000.

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 (d) The minimum turnover and investment requirement for
Innovator Occupation Permit are being removed.

(e) The spouse of an OP holder will not need a permit to invest

or work in Mauritius.

(f) OP holders will also be allowed to bring their parents to live

in Mauritius.

(g) The EDB will be the only agency responsible to determine

and recommend applications for the OP.

(h) Professionals with an OP and foreign retirees with a

Residence Permit will be able to invest in other ventures
without any shareholding restriction.

(i) Non-citizens who have a residence permit under the

various real estate schemes will no longer require an
Occupation or Work Permit to invest and work in Mauritius.

(j) The Permanent Residence Permit will be extended from

10 to 20 years.

(k) OP and Residence Permit holders will be eligible to apply

for a Permanent Residence Permit if they have held the
permit for three consecutive years.

Public Sector Transformation Strategy

Mr Speaker, Sir,

206. We rely on our public sector to relaunch our economy.

28
207. We will publish an Implementation Plan of the main measures of this
Budget.

208. A High-Level Committee, under the chair of the Prime Minister will
monitor the implementation of measures contained in the Plan.

209. This year, the Director of Audit has recommended improvements in

the management of public funds.

210. We are acting upon these recommendations.

211. We are reducing our recurrent expenditure, excluding social benefits,

by some 10 percent on average for the coming financial year.

212. The provision for overseas mission will be reduced by some

60 percent and the rates for Per-Diem and entertainment allowances
will be revised downwards accordingly.

213. Ministers and Private Parliamentary Secretaries will be allowed to

renew their official cars every 5 years instead of 4 years, irrespective
of the fuel type, but in accordance with authorised purchase price
ceilings.

Mr Speaker, Sir,

214. Digital Transformation is already underway.

215. To speed up this transformation, we need a strong institutional

champion.

216. The Central Informatics Bureau (CIB), Central Information Systems

Division (CISD), IT Security Unit (ITSU), National Computer Board
(NCB), State Informatics Limited (SIL) and the Government Online
Centre (GOC) will be completely restructured.

217. A Mauritius Digital Transformation Agency (MDTA) will be set up

under the aegis of the Prime Minister’s Office to lead this
transformation.

29
218. Furthermore, a new sandbox framework will be introduced to facilitate
development of proof of concepts and pilot exercises to test the
possibilities of innovative technologies.

Mr Speaker, Sir,

Ensure Social Justice through Fiscal Policies

219. I will now come to the reform of our fiscal policies.

220. We need to bring more progressivity and fairness in our taxation

system and we call upon the high income earners to further contribute
to rebuild our economy while preserving our social fabric.

221. We will ensure that each citizen will automatically receive a Tax
Account Number (TAN).

Solidarity Levy

222. To ensure more social justice, we are reviewing the solidarity levy.

223. The levy of 5 percent on the excess amount of chargeable income

plus dividends of a resident Mauritian citizen will now be 25 percent
and applicable as from Rs 3 Million annually.

224. The solidarity levy will be payable on a Pay As You Earn (PAYE)
basis.

225. This is the patriotic appeal which we make to those who earn most.

226. We expect to receive more than Rs 3.5 billion of additional revenue

from this levy.

227. As representatives of the people, we are proud to contribute to this

levy.

30
Corporate Tax

Mr Speaker, Sir,

228. We will also call upon the solidarity of our most successful economic
operators to contribute towards building resilience.

229. I am introducing a levy on companies having gross income exceeding

Rs 500 million in an accounting year or if it forms part of a group of
companies where the gross income of the group exceeds
Rs 500 million.

230. The levy will be on the annual gross income at the rate of –

(a) 0.3% for insurance companies, financial institutions,

service providers and property holding companies; and

(b) 0.1% for other companies

231. The levy will not apply to a company which operates in the tourism
sector or which holds a Global Business License.

Income Exemption Thresholds for the Middle Class

232. This economic solidarity from those who have the most enables us to
reduce the tax burden on middle-income households.

Mr Speaker, Sir,

233. I am therefore increasing income exemption thresholds for all

categories of taxpayers. The thresholds for the income year
2020-2021 are being raised by –

 Rs 15,000 for a taxpayer with up to two dependents;

 Rs 50,000 for a taxpayer with three dependents; and

 Rs 80,000 for a taxpayer with four or more dependents.

31
234. We are effectively either reducing or eliminating income tax for some
55,000 middle-income households.

235. An individual with three dependents will effectively pay Rs. 7,500 less
taxes in a year.

236. An individual with four dependents will effectively pay Rs. 12,000 less
taxes in a year.

237. This is what this reform entails today – a fairer, and more
redistributive income tax regime.

C. SECURING SUSTAINABLE AND INCLUSIVE DEVELOPMENT

Mr Speaker, Sir,

238. Our Government’s strategy is to secure a greener and more inclusive

development while preserving a strong social fabric. To this end, we
have earmarked some Rs 100 Billion in this Budget.

239. The “Assises de l’Environnement”, launched by the

Hon Prime Minister in December 2019, has urged for an acceleration
towards an ecological transition.

240. A transition to a cleaner, greener, sustainable, low emission and

climate resilient country.

241. We are proposing to transfer Rs 2 billion to the National

Environment Fund through an Estimates of Supplementary
Expenditure in this fiscal year. I will introduce a Supplementary
Appropriation Bill to cover exceptional expenditure incurred in
connection with the COVID-19 pandemic.

242. Significant investments will thus be made to address climate change

challenges.

243. Rs 314 Million are being earmarked to continue landslide stabilisation

works on our roads.
32
244. Rs 215 Million will be used for the protection of our beaches, lagoons
and coral reefs.

245. And Rs 207 Million will be provided for the Cleaning and
Embellishment Programme of drains, roads, rivers and public sites
including places of worship.

Reduce, Re-Use, Recycle, Recover

Mr Speaker, Sir,

246. We need to move towards a circular economy model.

247. We need to take the necessary measures to manage our wastes.

(a) Eco-bins will be made available at strategic places across

the island for the collection of plastic wastes.

(b) We will provide for the setting up a network of Civic

Amenity Centres (CAC) (déchetteries) at the 5 Transfer
Stations:

(c) The Ministry of Environment will encourage segregation of

waste at source.

(d) Local Authorities will carry out composting of market waste.

(e) As regards dry wastes, a feasibility study will be conducted

on the construction and operation of sorting units on a PPP
basis at Forbach and La Chaumière.

248. To encourage the recycling of waste tyres -

(a) Tyre retreading will be classified as a recycling activity.

(b) The refund mechanism for exporters and recyclers of

waste tyres will be extended to local retreading of tyres.

(c) The rate of refund will be Rs. 25 per retreaded tyre.

33
249. Finally, all recycling activities will be classified as a manufacturing
activity and will therefore benefit from the various fiscal and other
incentive schemes.

Air Quality Index

250. Air pollution poses a major threat to health, climate and the
environment.

251. We need to ensure that Mauritius remains a country with a good

quality of air.

252. We will thus provide for the introduction of the Air Quality Index to
enable the monitoring of the quality of air in Mauritius.

Drainage Infrastructure and Flood Management

Mr Speaker, Sir,

253. The effects of climate change and weather disruptions have caused
flash floods in several regions across the island.

254. It is thus imperative that we improve our country’s resilience to

flooding.

255. Rs 1.2 billion will be provided from the National Environment Fund to
construct drainage infrastructure in high risk flood-prone areas across
Mauritius and Rodrigues.

34
Energy

Mr Speaker, Sir,

256. Today, we need to ensure energy security and sustainability.

257. This is why we need to increase the share of local renewable energy
in our energy mix to 40% by 2030.

258. In this context, the following new projects will be pursued:

(a) Setting up of a 2 MW floating solar PV plant at

Tamarind Falls reservoir.

(b) Increasing the capacity of the solar PV farm at Henrietta

from 2 MW to 10 MW.

(c) Installing 1,000 solar panels on houses of low income

families.

(d) Commissioning a battery energy storage system of

14 MW.

259. The Central Electricity Board (CEB) will introduce the following
schemes to encourage the use of renewable energy:

(a) A Medium-Scale Distributed Generation (MSDG) Scheme,

for a maximum of 10 MW, to enable beneficiaries to
produce electricity for their own consumption and sell the
excess to CEB; and

(b) Installation of 25 MW of rooftop solar PV to cater for public

and residential buildings.

260. Furthermore, the CEB Renewable Energy Scheme for Religious

Bodies will be extended to cover NGOs and Charitable Institutions.

35
Wastewater

Mr Speaker Sir,

261. We are committed to connect more households to the sewerage

system.

262. Two major wastewater projects are being implemented at Grand Baie
and Pailles Guibies to connect some 7,000 houses to the sewerage
system.

263. Provision is also being made to implement wastewater projects in

Terre Rouge, Curepipe, St Paul, Dubreuil, Wooton and
Pointe aux Sables.

264. A feasibility study will be carried out for the implementation of waste
water network in Port Mathurin, Rodrigues.

Social Housing

Mr Speaker, Sir,

265. Development is first and foremost about people.

266. No citizen will be left behind in the development process.

267. That is why today, I have announced an exceptional effort to

construct 12,000 residential units over the next 3 years for Mauritian
families with monthly income of up to Rs 60,000.

268. For families earning monthly income of up to Rs 10,000, Government

will construct 1,800 housing units and subsidise 80 percent of the
cost.

36
269. For families earning monthly income between Rs 10,000 and
Rs 30,000, Government will construct 5,200 housing units and
subsidise 67 percent of the cost.

270. For families earning monthly income between Rs 30,000 and

Rs 45,000, Government will construct 3,500 housing units and
subsidise 40 percent of the cost.

271. And for families earning monthly income between Rs 45,000 and
Rs 60,000, Government will construct 1,500 housing units and
subsidise 30 percent of the cost.

272. Families will have the option to repay the remaining amount on a
monthly basis over a period of up to 35 years.

273. This housing programme will meet the needs of the most vulnerable
families as well as low and middle-income families.

274. The housing units will make maximum use of renewable energy.

Community Development

Mr Speaker, Sir,

275. Our towns and villages are also being provided with modern and lively
community infrastructure.

276. Rs 1.3 billion are being allocated to Local Authorities and the National
Development Unit for the following projects:

(a) Completion of Market Fairs at Bel Air, Goodlands and

Mahebourg and construction of new ones at Chemin
Grenier, Bambous and Pamplemouses;

(b) Completion of District Council Headquarters at Flacq and

Pamplemousses;

37
 (c) Completion of a Multipurpose Complex at Camp Levieux
and construction of new ones at Montagne Blanche,
Riviere du Rempart and Abercrombie;

(d) Construction and upgrading of 18 incinerators around the

island;

(e) Construction of a Leisure Park at Quartier Militaire;

(f) Construction of a new Sports Centre at Plaine Verte; and

(g) Completion of 200 secondary roads and 27 amenities

projects around the island by the National Development
Unit.

277. Some Rs 300 Million will be invested on a PPP basis on:

(a) The construction of an Integrated One Stop Centre at

Beau Bassin; and

(b) An integrated Market, Gymnasium and Sports amenities at

Bassin, Quatre Bornes.

Access to Water

Mr Speaker Sir,

278. We will work towards improving the distribution of water, reducing

water losses, and further increasing our water storage and treatment
facilities.

279. We will engage in the following major projects to improve our water
storage and treatment facilities:-

(a) Construction of a dam at Rivière des Anguilles and

rehabilitation of La Ferme Reservoir;
38
 (b) Construction of new water treatment plants at
Pont Lardier and Rivière des Anguilles and upgrading and
rehabilitation of existing ones at Piton du Milieu,
Rivière du Poste and Mont Blanc;

(c) Completion of pipe laying and other associated works at

the Bagatelle Water Treatment Plant;

(d) Drilling of additional boreholes at Piton, Petite Retraite,

Camp Thorel, Petit Paquet, Valriche, St Martin and
Moka; and

(e) Installation of mobile treatment plants in Mare d’Australia,

Poudre d’Or, Tyack, Britannia, Beau Songes,
Rivière du Poste, Beau Champs, La Marie, Valetta,
Vuillemin and Goodlands.

280. To reduce water losses and improve the distribution of water -

(a) 100 km of pipes will be replaced across the island;

(b) 50,000 defective water meters will be replaced over the

next 2 years;

(c) Service Reservoirs at Montagne Fayence and

Rivière Dragon will become operational before end of
2020 and 4 additional service reservoirs will be
constructed at Salazie, Eau Bouillie, Cluny and
Riche en Eau;

(d) Some 12,500 households will benefit from the

Water Tank Grant Scheme; and

(e) 20 water tankers and 6 Emergency Response Vehicles will

be acquired.

39
For an Advanced Healthcare System

Mr Speaker, Sir,

281. We have managed the COVID 19 pandemic by taking very bold

actions under a very strong leadership at an early stage.

282. Our strategy has produced good results.

283. But the fight is not fully over.

284. We are therefore allocating Rs 12 billion to the health sector over the
next fiscal year.

285. The Ministry of Health and Wellness is coming up with a new 5 year
Strategic Plan 2020-2024 to ensure that our national health services
can cope with new challenges.

286. To effectively control infectious diseases, Government is setting up a

National Centre for Disease Control and Prevention.

287. We will invest massively to expand, diversify and modernise our

public health infrastructure. To this end -

(a) A new Cancer Hospital, using state of art technology, will

be operational by December 2020;

(b) The construction of a new Eye Hospital at the Réduit

Triangle will start by October 2020;

(c) The construction of a new Teaching Hospital at Flacq will

begin early 2021;

(d) A renal transplant unit will be set up at JNH Hospital;

(e) A new National Laboratory will be set up with latest

technologies to substantially improve testing capacity;

40
 (f) A new warehouse for the storage of medicines under
optimal conditions will be constructed; and

(g) A National Laboratory Information Management System

(LIMS) will be implemented.

Mr Speaker, Sir,

288. The prevalence of diabetes in Mauritius is one of the highest in the

world.

289. We need to reverse this trend and effectively reduce sugar contents
in products.

290. Therefore, I am doubling the existing sugar tax of 3 cents per gram of
sugar.

291. The coverage of the tax will be extended to a number of locally

manufactured and imported non-staple sweetened products.
A complete list is at the Annex to the Budget Speech.

Education

Mr Speaker, Sir,

292. Education is what will forge the Mauritius of tomorrow.

293. We need to secure an inclusive education system fully adapted to the

new developmental needs of our economy and society.

294. We are allocating Rs 15 billion to the Ministry of Education, Tertiary

Education, Science and Technology.

295. Government will invest in the renovation, upgrading and

refurbishment of over 70 primary and secondary schools.

41
296. E-learning technologies are fundamental in improving access to and
delivery of education. To this end:

(a) Government will invest some Rs 100 M in the deployment

of wireless local area network in 155 secondary schools in
Mauritius and Rodrigues.

(b) A National e-Learning Platform will be developed to

connect educators of secondary schools with their
students.

(c) The DBM Ltd will provide financing facilities to households

for acquisition of IT equipment for educational purpose.

297. As we move towards a knowledge based and innovation driven

economy, we need to expand capacity, and have a greater diversity
of courses especially in the fields of new technologies and innovation.

298. I am therefore coming up with a comprehensive package of incentives

to encourage the top 500 institutions worldwide to set up branch
campuses in Mauritius. They will benefit from: -

(a) Tax holiday for the first eight years of operation; and

(b) Exemption of tax on IT and IT related materials and

equipment for the purpose of online education.

299. As we develop and modernise our education system, we also have to

ensure its inclusiveness.

300. I am therefore earmarking an amount of Rs 138 million as the

grant-in-aid to NGOs running Special Education Needs (SEN)
Schools.

42
301. In addition, I am providing a one-off grant of Rs 100,000 to each
Special Education Needs (SEN) school run by NGOs to help them
improve their learning environment.

Social Integration and Social Security

Mr Speaker, Sir,

302. Bedridden and severe disability persons aged above 60 years and
those below 18 years benefit from medical domiciliary visits.

303. We are extending this benefit to all persons aged above 18.

304. A taxpayer will be allowed to claim as dependent a bedridden next of

kin who is in his care.

305. For better protection of the elderly, funds are being earmarked in this
Budget to double the number of anti-influenza vaccines from
75,000 to 150,000.

306. A new Recreational Centre will become operational at Riambel by

December 2020 to provide recreational and leisure facilities.

307. To enhance policy effectiveness in our fight against poverty, a

National Database for Vulnerable Groups will be set-up to cover both
absolute and relative poverty cases.

308. Some 2,570 tablets will be provided to students of Grades 10 to 13 for

families in the existing SRM.

309. Free broadband internet facilities will be extended to an additional

5,000 families under the existing SRM including 2,000 families in
Rodrigues.

310. The National Social Inclusion Foundation will provide Rs 700 million
to support NGOs in implementing projects and programmes approved
by the Foundation.

43
311. This will assist some 350 NGOs and service providers and will focus
on:

(a) Empowering students and families in deprived areas

through the Fortified Learning Environment Unit.

(b) Enhancing crèche activities.

(c) Promoting social innovation and entrepreneurship.

(d) Building sustainable communities.

(e) Facilitating small scale initiatives by NGOs.

312. We will increase the provision in respect of the grant in aid to NGOs
accordingly.

313. The Public Collections Act will be amended to allow for collections of
donations through online platform and by retail outlets for NGOs.

314. We will continue to support religious bodies by increasing the

provision in respect of their annual grant from Rs 93 million to Rs 103
million.

Law and Order

Mr Speaker, Sir,

315. Government will continue to enhance security and ensure that law
and order prevails in the country. An amount of
Rs 8.4 billion has been provided to the Police Force.

44
316. This includes -

(a) Rs 642 million to continue to expand the Safe City Project

so as to combat crimes and ensure better traffic
management;

(b) Rs 137 million for the implementation of the Advance

Passenger Information System;

(c) Rs 100 million will be provided for the construction of a

new Forensic Science Laboratory;

(d) Rs 100 million for the National Coast Guard to track all
illicit activities on the high seas;

(e) Rs 77.4 million for a new Automated Fingerprint

Identification System;

(f) Rs 50.8 million for the upgrading of drug analytical

services and purchase of new Hi-Tech equipment for the
Forensic Science Laboratory;

(g) Rs 50 million for the acquisition of vehicles to increase the

operational capabilities of the Police Force;

(h) Rs 6 million for the acquisition of two full body scanners at

Central Prison and Eastern High Security Prison; and

(i) Rs 5 million for the acquisition of specialised vehicles for

the Anti-Drug Smuggling Unit.

45
Judiciary

317. The New Supreme Court, a state of the art building with 24 court
rooms and latest amenities, will be operational in August 2020.

318. Provision has been made for additional 50 posts in the Judiciary,
including Puisne Judges, District Magistrates and Court Officers.

Gender and Family Welfare

Mr Speaker, Sir,

319. Gender based violence is a stain on our society.

320. The Protection Against Domestic Violence Act will be amended to

strengthen the protection given to victims and make Perpetrators
Rehabilitation Programme compulsory.

321. A Gender Based Violence Observatory will be set up.

322. For women entrepreneurs, DBM Ltd will provide Rs 200 million for
loans at a concessional rate of 0.5 percent per annum.

323. I now come to measures to improve the rights of Children.

324. Additional Child Protection Services will be set up in the Districts of

Grand-Port, Moka, Pamplemousses and Plaine Wilhems.

325. The Cap Malheureux Relay Shelter for boys will be upgraded and the
Notre Dame Women Empowerment Centre will be converted into a
Relay Shelter for girls.

326. The Foster Care Programme will be extended to also cover children
above 10 years old.

327. We will continue the Programme for the upgrading of creches to

enable them to be licensed.

46
Youth Empowerment, Sports and Recreation

Mr Speaker, Sir,

328. We remain fully committed to providing opportunities for physical

activity, sport and recreation to all.

329. To this end, the Ministry of Youth Empowerment, Sports and

Recreation in collaboration with the Prime Minister’s Office and the
Mauritius Sports Council will set up ‘Local Active Mauritius
Partnerships’ (LAMPS) across each of our 21 Constituencies.

330. For our high level athletes, we are providing -

(a) Rs 5 million for the preparation for the

Tokyo Olympics; and

(b) Rs 10 million for the preparation for the

Paris Olympics.

331. A Sports Facilities Management Unit will be set up to manage the

upgrading and maintenance of our sport facilities.

Consumer Protection

Mr Speaker, Sir,

332. We value consumer welfare and protection.

333. To this end, we will –

(a) Introduce a mandatory labelling on food products to

indicate vegetarian products;

47
 (b) Develop a new consumer protection framework that will
cater for e-commerce; and

(c) Provide a subsidy of Rs 2 billion to maintain the retail

prices of rice and flour at their current levels and to bring
down the price of one cylinder of 12 Kg of LPG from
Rs 210 to Rs 180.

Rodrigues and Outer Islands

Mr Speaker, Sir,

334. I now turn to Rodrigues and our outer islands.

335. The funding of the new runway at Plaine Corail Airport is being
finalized and the construction works will start next year.

336. Construction of the new Technopark at Baladirou has started. With

the availability of higher bandwidth with the MARS project, this will
give a boost to development of information technology in the island
and create jobs.

337. The Economic Development Board will set up an office in Rodrigues

to promote economic development in the island.

338. A new shipping vessel will be delivered before the end of next year to
service the Mauritius-Rodrigues route and outer islands.

339. The Outer Islands Development Corporation will be restructured and

the new institution will prepare an Economic Development Plan for
Agalega.

48
Mr Speaker, Sir,

340. The recent change made by the United Nations to its official world
map to clearly show the Chagos Archipelago as part of the territory of
the Republic of Mauritius is further recognition by international
institutions of our sovereignty over the Chagos Archipelago.

341. Government will pursue all political, legal and diplomatic avenues to
achieve the completion of our decolonization process.

342. Government also remains unwavering in its commitment to implement

a programme for resettlement in the Chagos Archipelago.

343. The necessary funds are being provided to support these efforts.

Budget Outturn and Outlook

Mr Speaker, Sir,

344. I now come to the budget outturn for the year 2019-2020.

345. The impact of COVID-19 on public finances has been significant.

346. The budget deficit would reach 13.6 percent of GDP.

347. This will be due to the combined effect of lower revenue and higher
expenditure.

348. As regards the outlook for 2020-2021, total revenue will amount to
Rs 162.9 billion and total expenditure will amount to Rs 162.9 billion.

CONCLUSION

Mr Speaker Sir,

349. This Budget is delivered in one of the most uncertain and challenging
times in our history.

49
350. Yet, despite the circumstances, this Government commits itself to
preserve the essentials.

351. Guaranteeing what our fellow citizens have acquired throughout the
years, whilst also ensuring the sustainability of our public finances.

352. By placing social justice and sustainability at the heart of our vision, I
am pleased to announce that the Budget 2020-2021 is a balanced
Budget.

353. We preferred courage, innovation and empathy to the ease of

detached accounting calculations.

354. To this end, we are preserving: -

(a) Basic Retirement Pension as from the age of 60.

(b) National Minimum Wage.

(c) Negative Income Tax for the low-income earners.

(d) End-of-year bonus.

(e) Access to free and quality education.

(f) Subsidy on the examination fees for SC and HSC.

(g) Free access to a healthcare system which has proved its

resilience.

(h) Free transport to the elderly and school children, as well as

(i) Subsidy on flour, and Rice.

50
Mr Speaker, Sir,

355. We made the choice to maintain these achievements, without giving

in to the sirens of temptation of punitive and regressive reforms.

356. In so doing, we undertake: -

(a) To maintain a low tax for the middle-class and a

competitive fiscality for companies;

(b) Not to tax interest;

(c) No increase in Value Added Tax rate;

(d) To decrease the price of LPG by Rs 30. The price of a

12 kg cylinder will now cost Rs 180 instead of Rs 210; and

(e) To provide an exemption allocation of Rs 15,000 to the

Police Officers and Hospital staff who have been mobilised
during the confinement period.

Mr Speaker, Sir,

357. We will rise to the ambitions of securing today and preparing for a
better tomorrow for all Mauritians.

358. Today’s Budget is the promise of this Government to respond to this

crisis that is shaking us.

51
359. Through this Budget, we are: -

(a) Preserving jobs and livelihoods for the most vulnerable of

our society.

(b) Rebuilding our Economy.

(c) Ensuring an inclusive, robust and sustainable economic

development together.

Mr Speaker, Sir,

360. We are investing massively for our people, and our enterprises.

361. To this end, we are earmarking more than Rs. 40 billion for major
infrastructural projects such as the construction of 12,000 social
housing units, the development of new community infrastructure, the
construction of the Riviere des Anguilles Dam as well as new roads
and bridges, the development of port infrastructure and the
construction of the Metro on the Rose Hill to Curepipe segment.

362. Rs 80 billion will be invested though the Mauritius Investment

Corporation Ltd (MIC) to: -

(a) Support important and viable companies in Mauritius,

which are financially distressed as a result of the
COVID-19 pandemic;

(b) Promote Food and pharmaceutical production towards self-

sufficiency;

(c) Assist companies geared towards a smart and innovative-

driven future Mauritius; and

(d) Invest in projects of strategic national importance to the

country.

52
363. Furthermore, Rs 20 billion are being injected to support the small and
medium sized enterprises, and vulnerable households.

364. The Development Bank of Mauritius will invest Rs 10 billion in the

SME Sector to sustain small and medium firms at concessional rate
of 0.5 percent per annum.

365. Finally, and most importantly, the Government will do everything to

protect employment but also support those faced with a period of
technical unemployment. To this end, over the next six months,
Rs. 15 billion have been earmarked to provide an exceptional
minimum monthly support of Rs. 5,100 to each beneficiary.

366. The DBM, the MIC, the MRA, the Ministry of Labour, Human
Resources and Training as well as the Tourism Authority will ensure
the implementation of this support.

Mr Speaker, Sir,

367. In this period troubled by the Covid-19 pandemic, we have few

certainties but many convictions.

368. If the crisis of 1929 had its rescue in the “New Deal”, today’s crisis will
find its response in the “New Normal”.

369. This New Normal is not imposed on us, it is chosen – it is Our New
Normal.

370. Through this Budget, we kickstart the reforms which Mauritius needs.

371. These courageous reforms, it is above all as a Mauritian citizen that I

am proud to carry them.

372. Let us be a united and visionary people, the future of our nation
depends on it.

373. It is the foundations of the Economy of life.

53
374. An economy detached from the superfluous and which focuses on
strategic sectors.

375. The future of Mauritius belongs to those who engage themselves in

the industries of life.

376. We need to identify strategic and priority sectors, engines of

tomorrow's growth.

377. For this, we are giving agriculture its acclaim, and making Mauritius
our nourishing land.

378. We are setting up the right ecosystem to allow entrepreneurs from

here and elsewhere to turn their ideas into creation.

379. We are creating a new synergy with Africa, the cradle of humanity
and for which our sense of belonging is so strong.

380. We are banking on a knowledge economy where technology, sharing

and innovation are at the heart of our plan.

381. We are making healthcare a pillar of our economy, by investing in an

efficient health system and by welcoming companies focused on
medical innovation.

382. We have to pull away from the dichotomy of "the economy OR

health".

383. Mr Speaker, Sir, the economy is life. We have to approach it with the
same determination.

Mr Speaker, Sir,

384. I would like to seize this opportunity to thank the Prime Minister for his
continuous and undivided support for the preparation of this Budget
as well as the valuable input of my colleague Ministers.

54
385. I would also like to thank my team, in particular the
Financial Secretary.

386. I now commend the Bill to the House.

387. Thank you.

55