Some of these following proposed measures should be targeted to the poor while the more well-to-do families “pou bizin serre ceinture “ as inflation and energy prices, both already reaching all-time highs, bounced even higher as a result of the war and the incapacity of our Minister of Finance to tackle rampant inflation and deteriorating living standards that have stoked discontent all around, especially at the rocketing food prices.
Proposed measures:
1. Reducing taxes and levies on petroleum,
2. Applying VAT on the FOB price instead of CIF on imported items,
3. Increasing pensions to re-establish the purchasing power of same since last increase,
4 Providing cash handouts to families,
5. Offer savings bonds to pensioners at inflation proof interest rates,
6. Expand the existing subsidy regime to other items and
7. Reducing importers profit margins on subsidised products such as milk powder.
Payadachy discloses that “Ce sont les taxes sur les produits pétroliers qui nous ont permis de mettre Rs 8 Mds sur la table pour subsidier le gaz, la farine, le riz, entre......”
What he does not say is that these subsidies are a response to the negative impact of inflation on our purchasing power - much of their own making- the inflation rate that has reached a catastrophic 9.0%( unofficially some 15%, if not higher) in February 2022, with core inflation, CORE 2 , which is non-food and non-fuel inflation, at 5.8% .
We are paying dearly today for his failure to tackle the source of the problem, which is excessive monetary and fiscal expansion leading to rupee depreciation and inflation.
We have not forgotten his continuous recourse to heavy monetary financing from BoM which have been aggravating pressures on depreciation and inflation.
After years of endemic corruption, irresponsible populism, economic mismanagement and without any vision to run the country, this regime has squeezed all life out of our economy leaving us on our knees , incapable and too weakened to face the stiffer headwinds of the present global storms…
Things had to come to a head but "pas blié" !!!
“ In the absence of significant adjustments to the fiscal trajectory, the debt level would rise to unsustainable levels in the medium term.”
