On 09 November 2012 the Vice Prime Minister and Minister of Finance, Hon. Xavier Luc Duval, delivered his second budget aptly titled “ Rising to the challenges of a world in transition”
Containing few measures in the way of providing short term solutions, it instead concentrated on laying the building blocks for the future positioning of Mauritius and its fiscal space management.
Taken in totality, this year’s budget has completed the shift in the Government’s attitudes and policy mindset. Besides key measures targeted at businesses, the other five main areas of focus are: promoting adoption of technology; enabling the Africa strategy, support growth through quantitative easing; modernising access to innovative public services and protecting the vulnerable.
As part of the Government’s plans to steer the economy through the prolonged Global Crisis, the macroeconomic indicators suggest that the stimulus package and austerity measures were rightly managed to achieve a growth rate of 3.4% in 2012 with a budget deficit reported at 2.5% while Debt to GDP ratio is on the decrease. 2013 Forecast growth of 4% and a lower forecast budget deficit for the year ahead indicate that rigorous management of the fiscal space will be maintained.
The Minister has introduced foreign skills and talent mobility into the country’s strategy for Africa by removing Visa requirements, more scholarships for African students, and the opening up of Freeport benefits to manufacturing export into Africa.
The establishment of the Regional Treasury centres ,Regional Headquarter structures coupled. Non-treaty based funds and enactment of Limited Liability Partnership Bill will position Mauritius as more robust IFC.
We hope that you will find our Budget commentary publication this year of assistance in putting into perspective the new initiatives unveiled in Budget 2013.