Budget Address 2023 |05 November 2022

Government announces several relief and support measures

A series of measures which are expected to bring support and some relief to our people following the harsh economic challenges we have been faced with during the past two years were announced by the Minister for Finance, National Planning and Trade in his budget address for 2023 presented before the National Assembly yesterday morning.

Minister Naadir Hassan said these measures are the results of the tough decisions the government made to stabilise and re-launch the economy and the sacrifices that our people made during the past two years.

“Today we can proudly say that we have succeeded in overcoming the biggest economic challenges that this country has ever faced in its history,” Minister Hassan said.

“The 2023 budget is one that will distribute the results of our hard work among our people and also make it possible for the government to continue investing in more social infrastructure to benefit our people as well as further develop our economy,” he pointed out.

Some of the measures announced are as follows;

As the social sector remains one of the government’s priorities in 2023, this is why the temporary assistance of R500 announced in July 2022 which was to last until December this year will now be maintained until March 2023.

As from April the assistance will stop as the announced salary increase will take effect.

Meanwhile all beneficiaries under the different programmes of the Agency for Social Protection (ASP) who have qualified for the temporary assistance and are benefiting since July, they too will continue to receive the assistance.

During this year the government reviewed the structure for the ‘Cleaners’ Cooperative’. All the employees of the cooperative will be employed by their respective ministries, departments and agencies come January 2024.

The goverment has made a budget allocation of R24.7 million to pay for their compensations at the end of 2023.

Home carers will also continue to receive the monthly R500 announced since July this year and this will amount to R15.75 million in 2023.

Meanwhile Minister Hassan said the government will continue to provide breakfast for all primary pupils and secondary students in State schools and this will amount to R17.9 million in 2023 while lunch for the same group will amount to R20.1 million.

In relation to students going to study abroad, Minister Hassan announced that all students who have qualified for a scholarship will in 2023 be able to continue their studies abroad. A sum of R205.1 million has been projected to ensure that these students proceed to follow their advanced studies.

“In spite of our economic difficulties the government continues to invest in our young people to ensure they have a good future,” Minister Hassan said.

Furthermore to ensure that our students studying abroad are comfortable, for 2023 the government is increasing the stipend for students studying in 17 countries by 10% and this is in consideration of increases in the cost of living in these countries.

Meanwhile students studying at the UniSey will also benefit from the 10% increase in their stipend. A sum of R2.5 million has been earmarked for these expenses.

Also in the education sector the government has announced an ‘educational loans scheme’. Minister Hassan said this will complement the government’s programme on advanced training. He said the government has already finalised discussions on the scheme with commercial banks. The scheme is expected to be another option for individuals who are keen to develop another skill base on the country’s needs.

Housing remains one of the government’s greatest challenges. So with the aim of diversifying housing products, the government is exploring different innovative measures to encourage those individuals who can afford to finance the construction of their houses. But to do this they need to have access to affordable financing.

The subsidised housing scheme was established to improve access to affordable housing construction for families and other individuals who want their own house.

The subsidy is added to the housing ‘loan’ of the applicant and he or she did not have to make any repayment.

During the past two years, there have been a lot of changes in the construction costs of houses and other factors that have contributed to prevent a large majority of Seychellois from benefiting from the scheme and build their own house thus the need to review the situation.

As from January 2023 these rates will be reviewed.

In the meantime the government is continuing with its housing projects and a sum of R1.18 billion has been earmarked for new housing development projects while a sum of

R137 million is going towards landbank projects.

Furthermore Minister Hassan remarked that a total sum of R389.4 million which represent 27.6% of the total investment in the land and housing sector have been allocated for 2023.

Meanwhile Minister Hassan has said that the ‘part rental’ scheme for housing and the ‘Home Improvement/Re-roofing’ scheme for pensioners remain in place and a sum of R11.8 million and another sum of R5 million respectively are being budgeted for 2023.

Investments in economic development infrastructure for the county’s continued economic development are also important and for 2023, a budget allocation of R47.8 million has been made for the Industrial Estate Authority (IEA) to fund three specific projects namely ; the continuation of the ‘Zone 20’ infrastructure project, the new phase of a project on ‘Ile Eve’ and also a new project for ‘Zone 6’ and the Industrial Marine Park.

As from April 2023, the government will introduce a new levy under the Environment Protection Act and as a result, foreign visitors will be charged for each night stay in Seychelles.

Meanwhile also as from January 2023 government will introduce a tax on revenues made by medium and large hotel establishments.

Minister Hassan said the new 2% tax on revenues is projected to bring the government a sum of R118 million in 2023.

Marie-Anne Lepathy