The 2011 Budget will be the focus of attention in the next few days. Debate on it started in the National Assembly this morning with the address of Opposition Leader Wavel Ramkalawan.
The SNP does not accept the grand claims made by Vice-President Danny Faure that the Budget has “something for every Seychellois”.
In overall terms, the 2010 Budget allocations for ministries and departments are only slightly more, an increase of R44 million, than the actual expenditure this year. This will barely keep up with increased costs and new demands, and will not permit ministries to meet the pressing needs which have accumulated.
The large ministries such as education and health, although they receive the largest share of allocations, will not be able to improve situations which are difficult such as lack of maintenance and materials. For many Government organisations and for the population in general, this Budget still bears the marks of austerity which characterises the IMF-led rescue package.
While James Michel and Danny Faure claim success for the economic reforms, the fruits still have to reach the people. If there is one difference, it is that Government is rich. The effect of economic reforms that people have felt so far is taxes and more taxes. For 2011, Government is envisaging R1 billion more than it anticipated for the 2009 Budget, an increase of 29% in two years.
The money is not going out to the population. The main goal of Government is to build up reserves to meet the targets of the IMF-supported programme.
In his reply, Opposition Leader Ramkalawan has described Seychelles as a country in which the rich are getting richer and the poor are getting poorer. He has called for a re-alignment of the tax system in favour of the lower income earners. He has proposed eliminating income for persons earning the minimum wage and a gradual scale of taxation from 5% to 20% instead of the flat rate of 15% paid by everyone. Mr. Ramkalawan has said that improving earnings for low to middle income earners is a matter of social justice. Higher earnings for a large section of our population will also be good for business since it will boost spending, he said. He has likewise called for a comprehensive revision of the salary structure for the public service.
The Opposition Leader has called for more resolute action and more resources to address social ills which the country is facing today. Crime, drug use and social problems are undermining the foundations of our society and need concerted action, he said. These are problems that we cannot leave unattended.
No comments:
Post a Comment