What has been, on an approximate level, our loss in purchasing power ?
BoM's estimate for the inflation rate in 2022 is 8.6 %.
How have we fared in real terms ?
Average monthly earnings, which include wages and salaries, regularly paid bonuses and commissions as well as overtime payments, for all categories of employees, registered an nominal increase of 9.4 % between 2019 and June 2022 (inclusive of the increase of Rs 1000). It means an approximate decrease of 8% in real terms.
The wage index, inclusive of the Rs 1000 increase, shows a nominal increase of 13 % over the same period.; real wages has thus decreased by some 5%.
For the retired below 65 years, the nominal increase is 11 %- thus a fall of some 7% and
In terms of compensation of employees, there has been a fall of 1.2 % in nominal terms over 2019 to 2021; in real terms it has decreased by -4.5 %.
This budget is not only failing to compensate Mauritian households for its loss in purchasing power, it is burdening households, with additional taxes of Rs 22 bn - Rs 7.3 bn will be collected from VAT; Rs 6.5 bn from income taxes; Rs 2.6 bn from excise duties and environment taxes and Rs 1.8 bn from taxes on specific services and gambling....It is a budget that collects billions in taxes but throws out only a few crumbs to the retired and those hard-working families who have seen their spending power melt away by hikes in inflation.
