Budget 2025-26: Government has the Opportunity to Ease Household Financial Strain

As the presentation of the 2025-26 Budget approaches, Suttyhudeo Tengur, President of the Association for the Protection of the Environment and Consumers (Apec), is calling for strong measures to protect purchasing power, regulate prices, and stimulate the economy. Budget consultations will begin in the first week of April.

The President of Apec responding to Defi Media:

What proposals will you be presenting this year?

Apec has developed a set of strategic recommendations to revitalise the economy. We emphasise the untapped potential of the blue economy, which is incredibly promising.

We advocate for a comprehensive study combined with proactive economic diplomacy to transform our Exclusive Economic Zone (EEZ) into a genuine driver of growth.

In the sector of new technologies, Mauritius must take a decisive leap forward.

Beyond the success of information and communication technologies (ICT), our focus must shift to artificial intelligence (AI) to strengthen this area.

The creation of a committee of independent experts is essential to develop a strategic plan that integrates AI into our economy.

On a social level, we firmly support the tax exemption of pensions. It is critical not to tax pensions in order to preserve the purchasing power of retirees.

Additionally, diversifying our sources of supply has become imperative to enhance competitiveness and lower prices.

Exploring new markets in Eastern Europe, Arab countries, and Africa would help us avoid over-dependence on traditional suppliers.

To encourage a freer and more competitive market, it is necessary to regulate cartel behaviour and monitor profit margins to keep inflation in check.

Finally, we believe that the Bank of Mauritius should sell US dollars directly to the State Trading Corporation (STC) to assist it in fulfilling its contractual obligations.

Many promises were made during the elections and reiterated in the programme speech, yet they are slow to be realised. What is your analysis of the current situation?

We first note that the new government is making efforts to ease the burden on consumers.

In its electoral manifesto, the Alliance of Change proposed the establishment of a Rs 10 billion stabilisation fund to control prices of essential goods.

Since the beginning of the year, prices of a range of products, such as baby milk and canned goods, have been kept in check thanks to the introduction of a markup.

Moreover, a slight reduction in fuel prices was recorded last December.

However, despite these measures, consumers are still feeling the pinch.

The reductions are not sufficient and have not significantly affected household budgets.

The citizens have high expectations. Without a substantial acceleration of the promised reforms, there is a risk that frustration will build within the population.

There remains significant work to be done urgently.

To genuinely ease the burden on consumers, the STC must align its actions with government policy and explore import sources where prices are lower.

As for other measures regarding price reduction, we will have to wait for the next Budget presentation.

The “State of the Economy” report paints a worrying picture of public finances. Are you concerned that the government’s first Budget will be marked by austerity measures?

Certainly not. The government has the means to present a solid Budget with strong measures aimed at relieving consumers.

While it is true that the report highlighted a concerning state of the economy, we must also consider the increase in revenue from income tax, which will help replenish state coffers.

Another point is that the value of the dollar against the rupee is declining, meaning our imports are becoming cheaper.

This situation should lead to a decrease in imported inflation. We are therefore in a relatively comfortable position as we prepare for the upcoming budget.

Source: Defi Media