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PM in communicative mood before budget presentation

6 juin 2006, 00:00

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The government wants more than ever to show solidarity. The time when the minister of Finance appeared lonely in his attempts to warn the population of economic difficulties is over. The whole cabinet ? except ministers on mission abroad ? was present at the prime minister?s press conference last Saturday. Navin Ramgoolam was flanked by two of his deputies, Tourism and Finance ministers, Xavier-Luc Duval and Rama Sithanen.

This press conference showed a PM more than ever adamant that the public will have to adapt to the difficult situation and accept in-depth reforms contained in the Budget speech to be delivered on Friday. Navin Ramgoolam aligned a series of figures ? concerning the accrued debts of the past few years ? to explain that the government has no other choice than tighten its and everybody?s belt. As could be expected, he jumped at the opportunity to criticise his predecessors who ?left the country in a disastrous state?.

To show its commitment to stop an era of waste, he announced the closure of the Development Works Corporation (DWC), which has debts of over Rs 500m and can?t even meet the government?s demands in terms of public works. Even though he did not mention any others, he presented it as a ?warning? to parastatal bodies. ?We will apply the same remedies to the same problems. We won?t tolerate abuse and inefficiency anymore (?). Every institution should be productive and show results.?

Business Parks of Mauritius, Mauritius Post Ltd and State Trading Corporation are other sources of concern for the government, as they are heavily indebted. In such a situation, the government seems to have no other choice than to make radical decisions, however difficult. This is what the PM wants the public to understand. ?We don?t have any choice,? he repeated on several occasions.

The government wants the budget to reduce waste while not losing the confidence of its electors. The aim of the joint press conference was to make the public realise that minister Sithanen will be making his first budget speech in extremely hard circumstances. It was as if he was asking the population to show understanding towards his minister.

As the minister of Finance does not exclude a rise in Value Added Tax, such an attitude will be very necessary on Friday. There is no doubt that the budget will insist on reducing public expenditure but the people will most probably be asked to contribute to this period of sacrifice? They have to be prepared to do so.

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