An initial contribution of Rs 500 million will be provided to launch the Fund, which will also support Export Industries to meet the challenges of global competition. In the same line, an Antidumping and Countervailing Measures Bill will be introduced in the Parliament. Amendments will also be made to the Legal Metrology Act, the Food Act and the Dangerous Chemicals Act to ensure that legislation that regulates local manufacturing is also applied to imports.

The budget lays much emphasis on an Inclusive Mauritius which is about widening the economic space for micro and small and medium enterprises (SMEs). To improve the system of support to SMEs, the availability of finance and facilitating access will be broadened, in particular for those enterprises that have viable projects but which are short of equity.

Government is setting up a scheme with the participation of commercial banks for an SME with less than Rs 50 million turnover to qualify for a loan with limited equity. The participating financial institutions and Government will share the risk equally. An SME will be able to obtain a loan from commercial banks with no more than 10 percent equity, compared to at least 40 percent presently. For start-ups, defined as new entrepreneurs, Government will guarantee up to 75 percent of the loans, provided the SME mobilizes at least 5 percent equity.

Also, participating financial institutions should have a dedicated SME department so as to demonstrate a commitment to inclusive banking. The scheme will only be open to banks that increase their lending to SMEs relative to a baseline in 2008 and these banks should have an elaborate plan for giving nonfinancial support as well. This will ensure that the scheme is in line with the Government's philosophy of supporting SMEs from business inception to maturity.

The SME Partnership Fund will raise its equity participation in SMEs from Rs 3 million to Rs 10 million. This will target mostly business start-ups, thus ensuring that there are no financing gaps in our system. Moreover to ensure effective delivery of services, the management of the SME Partnership Fund will be revisited.

So as to increase the flow of business towards SMEs, Government will give a preference of 15 percent on price for small domestic enterprises with less than Rs 50 million turnover and a 10 percent preference for small domestic building contractors with less than Rs 50 million turnover. The same benefits will be extended on a temporary basis until December 2010 to domestic manufacturing, regardless of turnover, to assist them in the transition to global competitiveness.

The Development Bank of Mauritius is raising the ceiling for loans under the quasi-equity scheme from Rs 400,000 to Rs 500,000. Besides, the Bank is increasing the limit on the booster loan scheme from Rs 75,000 to Rs 100,000.

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