Building an Attractive, Modern, Inclusive, Green and Open (AMIGO) Mauritius is the strategic theme of the 2008/2009 Budget which was presented on 6 June 2008 by Dr Ramakrishna Sithanen, Deputy Prime Minister and Minister of Finance and Economic Development.

The main thrusts of the 2008/2009 Budget, according to Dr Sithanen, are:

• To further open the economy to the rest of the world, through more improvement in the ease of doing business, consolidation of productive sectors and constructing new pillars.
• To build a Modern Mauritius with new and world class physical infrastructure, new cities and first-rate facilities.
• To build a Green future for Mauritius through the Maurice Ile Durable vision, and shift to local renewable sources of energy away from imported fossil fuel.
• To build an Inclusive Mauritius by integrating the families who are at the margin of development, by eradicating absolute poverty, by further broadening the circle of opportunities and addressing the food security issue.

A wide range of measures have been spelt out to achieve these objectives. The main ones relate to infrastructure, business facilitation, facilities for higher education, market-oriented training facilities for greater employability, human resources development, bridging the digital divide, environmental and energy savings issues, food production and abolition of customs duty on a wide range of food products, targeted actions through the Empowerment Programme, housing for the poor and for the middle income group and, reducing extreme poverty. Greater support is being extended to the vulnerable groups through enhancements in the various assistance schemes, including pensions.

‘Prosperity is found where everyone dares and where everyone does his best', summed up Dr Sithanen.

Overall figures

Operating expenditure for 2008/09 is estimated at Rs 63.5 billion, or 22.6 percent of Gross Domestic Product (GDP). Expenditure on acquisition of non-financial assets would amount to Rs 7.1 billion, representing 2.5 percent of GDP. Capital expenditure is earmarked at Rs 12.1 billion.

As for revenue, some Rs 50.7 billion is expected from taxes, Rs 4.0 billion from grants and Rs 6.9 billion from other non-tax revenue. Total revenue would thus amount to Rs 61.6 billion or 21.9 percent of GDP.

The overall deficit for 2007/08 will be contained to the budgeted 3.8 percent of GDP. The deficit is estimated to continue its downward path, as it is projected to reach 3.3 percent of GDP in 2008/2009. The rate of inflation is estimated at 8.6%, compared to 8.8 % in 2007-08.

Per capita income is expected to reach US$ 7,000 by end 2008.The growth rate for financial year 2008-09 is forecast at  6.2 percent, up from 5.5 percent in 2007/08. In three years, Mauritius has received Rs 20 billion of FDI and the forecast for 2008-09 is Rs 15 billion. 

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