Rs44.6 Billion CSG Gathered Since 2020, But Funds Have Vanished

In a surprising turn during Parliament sessions on Tuesday, May 13, Prime Minister Navin Ramgoolam announced that Rs 44.6 billion collected from the General Social Contribution (CSG) between September 2020 and April 2025 have vanished — with no remaining balance available today.

According to Ramgoolam, all these funds were initially deposited into the Consolidated Fund and subsequently redistributed.

Of this amount, Rs 34 billion was allocated to various social aid programs, while Rs 10.7 billion went toward public sector employee allowances and the government’s contribution to the CSG.

Launched in September 2020 to replace contributions to the National Pensions Fund, the CSG has since been regulated under the Social Contribution and Social Benefits Act of 2021.

CSG “dilapidated” before 2024 Elections?

The contribution rates are set at 1.5% for employees and 3% for employers on salaries up to Rs 50,000, then rising to 3% and 6% respectively for higher incomes.

However, Ramgoolam didn’t hold back on criticising the management of these funds. He accused the previous government of misappropriating resources for electoral gains, alleging that the funds were “dilapidated” before the last elections.

Source: l’Express