Families Face Financial Hardship as State Allowance Is Cut

Households are facing increased financial strain as the Mauritius Revenue Authority (MRA) gradually reduces social allowances, pushing many to buy cheaper, lower-quality goods. The cuts have intensified an ongoing cost of living crisis, prompting renewed calls for a ’14th-month’ salary to provide much-needed relief.

The move comes despite government efforts to combat rising prices and has left many families feeling abandoned.

A progressive reduction in allowances is planned until 2027 after the Prime Minister announced in May that the Contribution Sociale Généralisée (CSG), which funds the aid, had been depleted.

A Tense Financial Climate

Social allowances were introduced to help consumers cope with the rising cost of living in the post-Covid-19 period, a situation made worse by the nation’s dependence on imports.

These measures, deployed after increases to the minimum wage and pensions, were designed to offset the direct impact of international market fluctuations, such as higher oil prices and supply chain disruptions.

The CSG Income Allowance, for example, had been raised to Rs 2,000 per month for those earning less than Rs 25,000, benefiting approximately 200,000 people.

Other supports included a monthly Rs 1,000 for homeowners with mortgages up to Rs 5 million and the removal of VAT on 15 essential goods.

The Monthly Child Allowance was also increased, and a monthly Maternity Allowance of Rs 2,000 was available for nine months.

However, the Prime Minister stated that the CSG contributions were no longer available, leading to the planned phased reduction of these allowances.

Despite these cuts, the 2025-26 budget aims to guarantee a monthly income of Rs 20,000 for all full-time employees and maintain some CSG benefits for social register beneficiaries.

The Burden on Families

For many, these cuts are a severe blow. Aisha Sophia, a mother of two, described her new routine:

“Before, the MRA allowance allowed us to breathe. Today, every trip to the supermarket is a test. I look at the price before I even think about what we need.”

Jimmy Li, a private sector employee, feels he has to make “impossible choices” between paying bills and buying food.

“Sometimes I cut dinner to be able to pay my bills. By the middle of the month, there is almost nothing left,” he said.

The pressure is even more acute for households with children. Rajini Soonea, a mother of two, explains her sacrifices:

“I used to buy fresh fruits and put a little money aside. Now, it’s the strict minimum. I often tell my children that certain snacks are ‘too expensive.'”

Even pensioners and young adults are struggling. Marie-Claire, 67, said her pension barely covers medicine and groceries, while graphic designer Lena Appayah described her monthly existence as a “struggle to stay afloat.”

Many are also concerned about the long-term health consequences of cutting back on nutritious food and believe there is insufficient price control, leaving consumers powerless against importers and merchants.

The government has attempted to ease the burden with new measures, including a Rs 10 billion Price Stabilisation Fund and the removal of VAT on certain baby foods and vegetables.

However, many fear this will not be enough to counter the effect of the allowance cuts.

A Call for Lasting Solutions

While a ’14th-month’ salary would provide short-term relief, many are demanding more sustainable solutions, such as wage increases and a clear policy to stabilise the price of basic goods.

There is a widespread feeling of a deep disconnect between the official narrative of national growth and the daily reality faced by citizens.

Frustration is palpable, with many families giving up on leisure activities and small traditions, impacting their quality of life and morale. As one individual put it, “how much longer can citizens bear this pressure without breaking?”

The MRA was contacted for comment but did not respond before publication.

Source: l’Express