Alliance Lepep Economic Promises: An Estimated Cost of Rs 60 to 70 Billion

Independent economists have estimated that fulfilling the economic and social commitments made by the Alliance Lepep, both during the electoral campaign and before it, will cost between Rs 60 billion and Rs 70 billion. These promises, made by the political alliance prior to the elections, are expected to be financed through payments from the British government to the Mauritian authorities for the lease of Diego Garcia, which hosts a U.S. military base.

This agreement stemmed from ongoing discussions about sovereignty over the Chagos Islands between the two nations.

At this time, the exact amount of the lease payment remains unknown, as does the date for the treaty between the UK and Mauritius that will outline the financing details.

However, the leader of the Alliance Lepep, Pravind Jugnauth, has indicated that the amount will consist of “several billion rupees” intended to fulfill this new series of electoral promises.

Many of these commitments were part of the 17 key measures released by the outgoing government on October 23.

The proposed electoral promises include increasing the old-age pension to Rs 20,000, establishing a guaranteed minimum income of Rs 25,000, providing a monthly allowance of Rs 5,000 for differently-abled individuals, offering free medication with a doctor’s prescription, and implementing interest-free housing loans for individuals aged 18 to 35.

Additional pledges including a monthly payment of Rs 5,000 for each child aged 0 to 18, a minimum Rs 10,000 allocation for rents affected by natural disasters, and a monthly allowance of Rs 2,000 for stay-at-home parents, among others.

Amid these discussions, the rising cost of living remains the primary concern for the population.

The Alliance du Changement’s leaders are waiting for the publication of their electoral manifesto, scheduled for release on October 29, which will detail specific measures aimed at restoring the purchasing power of the citizens.

Navin Ramgoolam, the leader of the Alliance du Changement, has announced plans, should his alliance win the elections, to reduce the prices of gasoline, diesel, and various essential goods within the first week of taking office.

He also promised to raise the old-age pension to Rs 21,500 by January 2025, which exceeds the Rs 20,000 proposed by the Alliance Lepep, although he adds that this amount would be indexed to inflation each year.

Another pressing issue is the devaluation of the Mauritian rupee, which has depreciated by 30% against the dollar from 2019 to June 2024, averaging almost 6% per year.

The cumulative inflation during this same period has mirrored this decline.

This economic situation has severely impacted low-income households, which, according to opposition leaders, are struggling to make ends meet.

Kugan Parapen, an economist and member of Rezistans ek Alternativ, as well as a candidate for the Alliance du Changement in the Grande-Rivière-Nord-Ouest/Port-Louis-Ouest constituency, claiming that their alliance has solutions to address the high cost of living.

He emphasized the need to end speculation on the rupee by certain economic agents and operators, suggesting that the Bank of Mauritius should play a crucial role in stabilizing the currency.

He advocated for tighter control on the depreciation rate, proposing a limit of 2% to 3% per year as a significant step towards recovery.

In response, the Alliance Lepep dismissed these concerns as misguided and lists various measures they have implemented over the past five years aimed at increasing the population’s purchasing power in an effort to combat the increased cost of living.

Both Pravind Jugnauth and his Finance Minister, Renganaden Padayachy, asserted during meetings that a family earning the minimum wage with two young children and two retired grandparents can receive over Rs 70,000 per month.

They also highlighted their success in keeping inflation at 3.5% in 2024, along with pension and minimum wage increases, the introduction of multiple allowances, and tax reforms.

As the elections approach, speculation is growing about potential additional electoral measures from Pravind Jugnauth’s camp, which may include further economic and social incentives to assist those in financial distress.

Source: l’Express