Budget 2023 - “Our successful economic recovery is thanks to the positive participation of the people of Seychelles” says Minister Hassan
November 07, 2022
The Minister for Finance, National Planning and Trade, Naadir Hassan, has expressed his appreciation for the tenacity of the people of Seychelles, following the economic hardship the country has faced during the past two years.
In his 2023 budget address, delivered on Friday 04th November, before the National Assembly, Minister Hassan, reserved his most heartfelt thanks to the people of Seychelles, who he said has shown ‘a lot of resilience, perseverence, courage and maturity’.
“You have shown yourselves to be conscientious, and have taken the economic difficulties being faced by our country in your stride. You have demonstrated patience, and the willingness to give a helping hand for the good of Seychelles – you have helped to bolster the country during the most difficult period of its history”.
He said the good attitude shown by the people during this period, has now, two years later, ‘borne fruit’.
“As a responsible government, we recognize your positive participation in our economic success story”.
He said, the government will continue to work for the people in a ‘conscientious manner, so that the people may reap all possible benefits.’
“When we all come together and put in a greater effort, when we show greater solidarity, we create more wealth, and it is our people and each of our children who will benefit”.
He emphasised that throughout the past two years, the government has acted in a responsible and disciplined manner, in order for the country and the people to reap the benefits, as announced in the 2023 budget address.
“As a responsible government that is not afraid to take difficult decisions in the interest of our country, and even in the face of criticism against this government, we have maintained the necessary discipline – and today, we can see the results of having a clear and responsible plan that is being delivered by strong and decisive leaders.”
To illustrate the success of the economic reform programme, which is being supported by the International Monetary Fund (IMF), Minister Hassan went back to the end of 2020, when the country was in lockdown, and economic activities had stalled, as compared to the economic milestones achieved just two years on.
“In 2020, we had a primary fiscal deficit of 15.1 percent and our debt was 92.2 percent of GDP. Our Rupee had reached SR 21.8 to the dollar and we only had 14.9 million rupees in the government coffers. Our economic growth had contracted by 7.7 percent in 2021, and the inflation rate had reached 9.8 percent.
Mr. Speaker, today in 2022, our primary fiscal deficit is 1.1 percent of GDP, our debt has decreased to 67.9 percent of GDP, the inflation rate has gone down to 3 percent, and at the beginning of November 2022, the rate of the rupee to the dollar had gone down to R 14.32.”
The success of this economic recovery is recognised at the international level, where Seychelles is referred to as a model of economic management in a period of global economic crisis, especially since many other countries have found it difficult to manage this situation.’
After a difficult two years where the country’s economy was on the verge of collapsed, the 2023 budget focuses on sharing the positive benefits with the people, investing more in infrastructure to enable socioeconomic growth, while being responsible and discipline to ensure the country’s debt remains sustainable.
The main highlights of the 2023 budget:
- Consolidation of 4 allowances in the basic salary of all public servants
- an average of 10% increase on top of that consolidation for all public service employees
- Payment of 13th month, based on performance
- The temporary support introduced in July 2022, for inviduals receiving benefits from ASP: pensioners, home carers, disability and invalidity benefits, will continue in 2023
- Increase of 10% in stipend for students studying in 17 countries, including at Unisey
- Free wifi in all state schools
- Introduction of an Education loan scheme
- Increase in spending for the housing sector, as well as revisions in existing schemes to allow more access to affordable finance
- Revision of Stamp Duty Order
- R37 million allocated for athletes to participate in the Indian Ocean Games and Africa Games in 2023
- Creation of a new agency for Home Carers to professionalise the service
- A coast guard base on Praslin
- Introduction of a new environment levy in the tourism sector
- New business tax rate on turnover for medium and big tourism establishments
- Concessionary business tax rate for the aquaculture and fish processing sector
- New tax rate for securities dealers businesses
- Revision and new exemptions under 'Income and Non-Monetary Benefits' Act
- Construction of a new National Archive/SRC HQ
- Introduction of leadership programme in Public Service
- Increase spending in infrastructure
- Ensuring the country's debt remains sustainable
Minister Hassan reiterated that the 2023 budget is about giving back, after a two-year hardship, due to the devastated impact of the COVID 19 pandemic.
“I want to thank every Seychellois of whom we have asked a lot of sacrifice and patience during these past two years, while we focused on the stabilization and relaunching of our economy. Thank you for the faith that you have put in this government, to lead this country through this difficult period. Let us get up and work hard for our own wellbeing, for our families, our communities, our country. Seychelles is counting on us – so let us do it for Seychelles”.