Budget replies   |09 November 2023

US deplores 2024 budget while LDS applauds ‘a blueprint for a modern Seychelles’

The leader of the opposition has said the United Seychelles party cannot accept the premise the budget 2024 is based on.

Hon. Sebastien Pillay made the comment before the National Assembly yesterday when giving his reply to the Budget 2024 delivered last Friday by the Minister for Finance, National Planning and Trade, Naadir Hassan.

« Government is not giving us all information. They are hiding some things. This approach is irresponsible and US condemns this type of dirty game to hide information on the economy,” he stated.

Mr Pillay said the country was in a worrying state since no one could say how the economy was performing, and that the government that was yet to deliver on its 2023 promises has come back with a budget for 2024 with the same promises and additional ones.

“The government should have seized this opportunity to address the inequality and weaknesses the country and the people were facing,” he told the house, adding that more focus was being placed on infrastructure.

The leader of the opposition questioned several points stipulated by the finance minister such as increase in tax collection, where he denounced an unfair tax system, as well as an increase in welfare benefits which he said contradicts the minister’s statement that unemployment had gone down.

He also pointed that the elderly, whose financial assistance is spent primarily on transportation and medications, has been left out, and will not see an increase in their social security.

Hon. Pillay also questioned STC’s profit, which he said was not being enjoyed by the population that continuously complains about the high cost of living.

Other points raised were the scheme of service for health cadres, no investment into human resource at the Ministry of Education, and what he described as a “mysterious budget for the infrastructure agency”.

“The budget for the infrastructure agency is the most mysterious one. We will never know how much they are really getting, since last year’s funds are still in the suspense account and we are now adding money to it,” he stated.

Hon. Pillay also queried about the percentage of the budget destined for government employees arguing that the minister’s announcement and the reality were incongruent.

“I would have expected the minister to use the fiscal space to address long service allowance of staff due this year. But as usual this was not their priority. Another thing that was not their priority was the 10% increase for parastatal workers. It seems they are not interested in this group of workers.”

He further added the budget will further divide the population on the social basis and further widen the gap that exists instead of closing it.

“And when the projections of his revenues fail, he will come up with all the excuses to blame everybody else except himself for his inefficiency,” he concluded.

For his part, the leader of government business, Bernard Georges, said the budget was structured on three main themes; namely creating more riches to better manage the country and share with the population, recognise the country’s vulnerability and build up resilience against internal and external shocks and thirdly improve infrastructure as well as support the social regime so that no one was left behind.

“These three themes are a map, a plan, a blueprint, for a modern Seychelles where everyone is employed, no one is left behind, where all the infrastructure are at the highest level possible, where service delivery is high, be it for a patient in hospital, a student at school, an entrepreneur or a person receiving a pension,” stated Hon. Georges.

When elaborating on the first theme, which is to create more riches, Hon. Georges said the government will collect as much taxes as possible and ensure that those who are expected to pay taxes, do so, because that is the money that are invested in services such as public buses, health, free education, housing, sports and ports among others. He added the tax regime must be one that incentivize people to honour their tax obligations. “We have a tax regime that provides space for businesses to grow and make profit, tax them in a just and equitable manner, where those that can afford to pay do so, while those that are unable to pay, do not have to.”

Secondly the government will continue to diversify the economy and that contrary to the previous administration, the present one focuses on being a facilitator of private business instead of doing business except in one or two key sectors for specific reasons and for a limited time. Find new innovative ways of doing businesses so they become more competitive, as well as improve the ease of doing business.

With regard to the second theme; recognising the country’s vulnerability and becoming more resilient, Hon. Georges said that Seychelles is an attractive destination with its tourism, fisheries and offshore sectors. However it also faces many challenges.

“We must always ensure that we protect our three economic sectors and we diversify within these sectors and others, by finding better ways for the existing ones and creating new openings for those not yet exploited.”

As for the third theme; improve the country’s infrastructure and support the social regime, the leader of government business highlighted the improvements that have been observed since 2020, such as traffic flow with the construction of new roundabouts, construction of a ferry terminal on Praslin, with one under way for La Digue, new hospital, new roads, pavements, fire station and library among others.

With regard to the social regime, he said that his administration’s objective was to improve the lives of every Seychellois, especially the weaker ones who need the government’s support. Hon. Georges said that each budget presented by Minister Hassan since 2020, came at a time when the country was facing a specific issue such as Covid-19, the need to stabilise the economy or for reconstruction.

“This one comes on one of those rare occasions in the country’s history. Revenue has increased, expenses slashed, the budget is balanced. So it is time to use the saving to improve the lives of Seychellois,” he stated.

Hon. Georges added the budget has touched the entire population, although it will not make everyone happy as some ministers and agencies would think they have not received everything they needed to implement their programmes. He told the house there was something for everyone, from a baby to the elderly, either through benefits, new infrastructure, or projects for districts.

“Our country has received the most innovative budget than ever,” concluded the leader of government business, adding the future ones will enhance on the previous ones, and as and when riches grow, more will be shared with the population.

Other MNAs are also giving their reactions to the budget and this will go on until tomorrow.

Patsy Canaya