Economic Shake-Up 2024: Billions Taken, but Who Benefits?

Economist Rajeev Hasnah discusses the government’s economic philosophy of taking maximum resources from businesses and workers to redistribute to the population.

In the upcoming 2024 elections, the economy may take a backseat, but the philosophy behind the Mauritian economy has drastically changed since 2014, exacerbated by the impact of Covid-19.

This approach has led to a significant increase in public debt, printing of banknotes, introduction of disguised taxes, and a rise in VAT and indirect taxes.

These measures have burdened taxpayers and filled the state’s coffers with billions of rupees.

As the election year approaches, the government will prioritize economic and social largesse to appease voters.

However, the population has experienced a significant decline in purchasing power, with the minimum wage doubling in just five years.

The challenge lies in balancing economic imperatives with political incentives.

Concerns have been raised by private entrepreneurs regarding the impact of wage increases on their cash flow, which should be a priority for the country’s leaders to prevent a social crisis.

The way this situation is managed in the short and medium term will reveal the government’s true priorities, which may differ from those of other economic actors and specialists.

Source: l’Express