The presentation of the Budget by the minister of finance is an important event in the life of a nation. It is a fiscal roadmap for the year to come.
On November 2019, when this government led by Prime Minister Pravind Jugnauth waltzed into power, nobody had expected that the economy would take a turn for the worse. In early 2020, a big boxer named Covid-19 suddenly appeared on the scene and gave a hard punch on the backbone of our economy, Tourism, which fell unconscious and since then has not been revived.
The Wakashio and a series of floods have come to aggravate the situation. Socio-economic problems have escalated at an alarming rate; unemployment is rife, a reeling and soaring inflation is burning deep holes in the pockets of buyers and a gnawing hardship and distress are rampant. These thorny issues can only be addressed by telling the people the truth about the economy.
The aim of a budget is to tackle all these problems with a view to finding solutions. Our economy, as we all know, is much related to the International Monetary Fund, which found that some borrowing countries often dilapidate the money from their loans on wasteful or overly ambitious ventures.
With an economy in the doldrums, Renganaden Padayachy, the finance minister, has to walk the tightrope to avoid the country being foundered on the rocks. We are already swarmed by debt and the budgetary deficit is a gaping one. Some austerity measures have to be envisaged.