Viability of CSG questioned as Rs 25.6bn collected funds government payouts

Reform of the pension system, initiated by the MSM without consultation, now raises questions about the viability of the Contribution Sociale Généralisée (CSG) to afford an increase in the Basic Retirement Pension (BRP) of Rs 4,500.

The Rs 25.6 billion in contributions collected to date have been used directly by the government to pay for CSG Allowance, the increase in pension, and other allocations announced in the budget.

Actuaries and fiscalists warn that the CSG is not a fund that accumulates and invests employee and employer contributions, unlike the National Pensions Fund.

The government has been accused of deceiving the population, as the CSG is simply another source of government revenue.

As the population ages and declines, financial professionals predict that the situation will deteriorate, making this issue a major element of political campaigning.

Source: Le Mauricien