Did you contribute to the CSG? Well, there is no money left!

The revelation in Parliament by Finance Minister Renganaden Padayachy that the Generalised Social Contribution (CSG) Fund is “empty” has come as a shock for many.

Padayachy was questioned by Labour MP Ritish Ramful and MMM MP Aadil Ameer Meea on the matter, with some government members also surprised by the news.

Introduced in September 2020 to replace the National Pension Fund (NPF), the GSC had raised Rs25.8 billion over three years with the highest amount collected in 2022-23 at Rs9 billion and the first quarter of this year seeing Rs2.47 billion.

The NPF now being in deficit, Ramful argued that it would now be difficult to provide pensions to those who had contributed.

The minister did not provide a concrete answer, stating: “I’m not worried. I know how the pensions will be paid.”

The minister then provided a list of allocations that detailed roughly Rs25 billion disbursed, resulting in the depletion of the GSC fund.

The opposition expressed concern about how retiree pensions would be funded, with the minister responding vaguely and mentioning the introduction of various compensatory allocations funded by a Rs174 billion Budget provision.

The exchange also touched on the government’s debt and measures to stimulate economic growth. The speaker allowed the opposition members to pose their questions without interruption

Source: l’Express