Budget Address 2024 Government announces increase in several social benefits |04 November 2023
Minister Hassan delivering his budget address (Photo: Contributed)
● Outlines projects for priority sectors
The government has announced a revision in seven statutory benefits and the addition of a new benefit effective January 2024.
The Minister for Finance, National Planning and Trade, Naadir Hassan, made the announcement before the National Assembly yesterday morning when presenting government’s budget for 2024 which amounts to ten billion, six hundred and forty million, six hundred and twenty-eight thousand nine hundred and sixty six (R10,640,628,966) rupees.
The revision will see an increase in several social benefits.
Children who has lost one of their parents and are considered semi-orphans will now receive a benefit of R2350, instead of R1300, while abandoned children or orphans will receive a R3134 instead of the present R1540.
A foster child who is in the system and who is presently receiving R1300 monthly will be getting R3134 as from January. A foster parent, will get a one off sum of R25,000 to take care of a foster child.
Benefit for a survivor, which refers to a person who has lost a partner who was receiving a benefit from the Agency for Social Protection (ASP), will increase from R2480 to R5224.
Expectant mothers from inner islands who travel to Mahé to give birth will also see an increase in their allowance from R1500 to R5000.
Maternity and paternity benefits applicable to self-employed parents or those working on a casual basis will increase from R2480 to R6633.50, based on the level of assistance in line with the Employment Act.
The government is also introducing a new benefit that will target women who are having multiple births. The one off benefit will include a sum of R3134 for each additional child, up to a maximum of R6635. This will be maintained until the age of 5 years.
The payments will be on a monthly basis except for the two one off payments for foster parent and expectant mothers travelling to Mahé to give birth.
Minister Hassan told the house that the revision was done over a year of consultation with key partners and it was in line with government’s strategy to provide social benefits that is equitable and sustainable.
“It is important to note that certain benefits have not been revised since 2016 and it is clear that the way they were revised in the past was not done in a structured way,” said the minister, adding that a formal structure will be in place in the future, that will not only formalise the way the social benefits are revised, but also to observe whether they were achieving their goals taking into account the social and budgetary aspects.
He told the National Assembly that the revision will amount to R31 million surplus per year “but taking into account who will be benefitting and the adjustments made, it is justifiable”.
The minister also outlined projects for priority sectors in the country namely health, education, housing, sports development, social, community development, order and peace, transportation and national development.
Out of the R1.41 billion sum proposed for the health sector, the biggest amount of R693.4 million will go towards renumeration and salaries, while a sum of SR 639.6 million is for Goods and Services. A sum of SR 79.3 million is going towards capital projects which include the maintenance of the existing Seychelles hospital, renovation work on the BaieSte Anne hospital, additional work in La Digue for stand-by generator and alluminium ceiling, renovation work at the ex-NIHSS, additional facilities on the new NIHSS building, new medical storage facility in Providence , new sewereage for Seychelles hospital, extension of the ICU, renovation of the Les Mamelles health centre, construction of a BaieLazare health centre as well as renovation of various health facilities.
With regard to education, a sum of SR 1.40 billion has been budgeted for next year with SR 598.6 million for remuneration and salary. The biggest portion of R657.7 million will go towards Good and Services that cover purchase of furniture and IT equipment, breakfast and lunch schemes for students in all state schools, SPTC bus service, day care scheme and a studies fund covering those already employed and students who have just left professional centres. It also covers scholarships, Apprenticeship Scheme, and stipend for students in professional centres, including those from inner islands who have to travel to Mahé for their studies, who will see an increase of R600 in their allowance which is presently R2,000.
Similar to health, a sum will also be dedicated to capital projects in the education sector for the refurbishment of various schools.
The housing sector has been allocated a sum of R335.4 million for land bank projects, provisions for PUC infrastructure, mid-range condominiums for professionals and housing renovation scheme.
In sports, the sum of R48.3 million will go towards maintaining the various sporting insfrastructure and construction of new ones, and Seychelles’ participation at the Olympics, and All Africa Games.
For the community, the budget will cater for Disaster Emergency Works, renovation of old people’s homes and various other infrastructure, construction of a new residential centre for at-risk youth, and bus shelters among others.
The 2024 budget also covers the country’s ongoing effort towards order and peace with R62 million budgeted for various projects under the internal ministry, such as a maximum security prison for high-risk offenders, and one for medium to low risk offenders, new remand centre in Perseverance and new facility for marine police.
In agriculture, focus will be on high-tech farming where government is allocating R3 million in the budget and R60 million in the DBS fund for a total of R63 million for loans targeting ‘hi-tech farming’. With regard to fisheries and blue economy, the budget will cover capital projects such as port, market, and gear store.
The government has also announced a review in its tax policy, reviewing taxes applicable on bonuses and performance-based salaries paid at the end of the year. Presently, these are being taxed which the minister said was not encouraging to workers. The government is therefore introducing a new tax system, which will allow the employee to earn more. It will be providing a percentage of tax exemption on voluntary pension contribution by employers for their employees.
It is also introducing a tax holiday for a five-year period for new businesses in priority sectors, review the VAT Act to prevent booking platforms from charging commissions on the VAT, as well as reduce excise tax and environment levy applicable on certain vehicles using batteries as part of ongoing strategies to protect the environment.
Compiled by Patsy Canaya