The objective for 2022 is to achieve an economic growth rate that reaches between 6% and 7%. We have to work to reach this target and in a period of one to two months, we will have to see how the situation has evolved. This statement was made, this evening, by the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, at the Caudan Arts Centre, in Port-Louis, following the meeting of the third Public-Private Sector Joint Committee.
The Committee aimed at providing an effective, collaborative and interactive platform to address the challenges faced by the Mauritian economy and tap into new opportunities to foster economic development. It was organised by the Economic Development Board (EDB), in collaboration with the Ministry of Finance, Economic Planning and Development.
The high-level meeting, chaired by Minister Padayachy, was attended by the Financial Secretary, Mr Dharam Dev Manraj; the Governor of the Bank of Mauritius, Mr Harvesh Seegolam; the Chief Executive Officer of the EDB, Mr Ken Poonoosamy; and other personalities. Around 20 representatives from the private sector and public institutions, business operators as well as senior officials from the Ministry of Finance, Economic Planning and Development and the EDB, also participated.
In a statement, the Finance Minister said that the Committee allowed all stakeholders to exchange views on the challenges for the coming year with regards to the global outlook including the Russian-Ukrainian conflict and the high appreciation rate of the USD. The meeting also examined ways in which the economic performance of the country could be enhanced, he said.
Dr Padayachy further indicated that Government is here to work together with private partners for the country's economic recovery. This year, the challenge is to achieve a high rate of economic recovery and our objective is to reach a 7.2% growth rate and register the Rs 550 billion bar, he pointed out. So the aim is really to accelerate this recovery so that we can meet our targets given that the country underwent the worst economic crisis due to the COVID-19 pandemic over the past two years, he highlighted.
The Minister also spoke of the objective to welcome one million tourists in Mauritius as well as allow all activity sectors to thrive as was the case before the pandemic. During the Public-Private Sector Joint Committee, we gave assurances that at the level of the Ministry and the EDB, we are working to rapidly implement all the key budgetary measures, he underscored.
Moreover, he recalled that July is the first month of the financial year 2022/23 and last Friday, the first measure pertaining to the CSG income allowance was implemented. This measure will benefit people working in Mauritius and earning a salary of Rs 50 000 and who have contributed to the CSG. These workers will benefit from an income allowance of Rs 2 000 and some 350 000 persons are targeted, he said.
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The Minister affirmed that an analysis will be conducted during the month of July to see how many budgetary measures have already been implemented and to decide the way forward.
Dr Padayachy highlighted that work is ongoing to set up a fast-track committee to oversee investment projects and to resolve issues pertaining to recruitment. A committee will be set up under the chair of the Prime Minister with regards to the grant of work permits, he announced. All these initiatives will help Mauritius attain a high and sustainable growth rate, he emphasised.
Dr Padayachy underscored that work is ongoing to support the most vulnerable. He recalled that the price of oil has increased on the international front and on that note announced that the Minister of Commerce and Consumer Protection will introduce measures to offer subsidies on oil. Budget has earmarked Rs 500 million to offer subsidies on certain products in particular oil and milk and in the near future, oil will be put on the market by the State Trading Corporation at a reasonable price, he stated.
As regards inflation, the Minister stated that the rate will be high but ensuring a high growth rate will allow Government to bring more support to the most vulnerable, he added.
