Budget 2014: VAT Removed on Rice, Milk, Cheese and Butter

The Finance Minister Xavier-Luc Duval, stated two hours outline of the 2014 budget. Among the key measures announced include the elimination of VAT on essential food items such as rice, milk, butter, cheese, spices, sour milk, canned meat, the "soy bean" and veggie burgers.

A decision that made history: the abolition of the CPE and the introduction of the 9-year schooling. The 2014 budget provides an opportunity for government to keep its promise to the college. Touch pads are offered to students of Form IV and Form V. Other measures: 5% increase in the price of cigarettes and alcohol, the introduction of pre-paid meters by the CEB, recruiting 700 police officers and 700 medical staff and 100 firefighters, down Rs 450,000 for purchase of a home, up to a maximum tax rate of 2% for penalties on bank interest, the universal pension at Rs 3623, the next advent of private television, an amount of Rs 100 million for 8000 families living below the poverty line.

The total budget cost is estimated at Rs 101, 3 billion. The spotlight returns to the Ministry of Public Infrastructure with large road projects.

Housing for All

The Minister of Finance has given a new impetus to the housing sector by developing a 'National Home Ownership Program for families with low and middle-income and vulnerable families. The first stage of this program, 'Housing Empowerment Scheme', aimed at supporting middle-income families and affecting up to Rs 50,000 per month. The government is taking measures to reduce the deposit required by banks that provide housing loans. Second, the government is working to significantly reduce the cost of a housing unit.

Banks provide loans up to 95% of the cost of a home. Loans will be granted over two-year moratorium on capital repayment. To make this possible, the government guarantees 20% of the loan amount.

To reduce the cost of acquiring a unit, the government decided to pay VAT in the amount of Rs 300,000 for the construction of a house or buying an apartment costing less than Rs 2.5 million .

In addition, to facilitate the construction and save costs, the Mauritius Housing Corporation will provide, without charge, at least twelve types of architectural plans for each house with an area of 1000 and 1200 square feet.

The 'Social House Building Program will be launched in 2014. Through this program, 1,765 families will receive either a home or land.

The government has also taken steps to make available to vulnerable families in 2014, 450 additional social housing through the National Empowerment Foundation (NEF). It has also provided Rs 250 million to improve living conditions in the NHDC and ex-cited CHA through the rehabilitation program and Rs 80 million for the construction of slabs.

The Minister of Housing and Lands bring legislative changes to give families a dwelling on leased land belonging to the State the option to buy the land at a nominal price not exceeding Rs 2000 per plot.

In line with the 'National Home Ownership Program, the' Social Housing Funds' will be revamped into a 'National Housing Fund' with broader objectives.

Increase the universal pension and welfare

Consolidate the structure of social assistance and support the most vulnerable while allowing them to escape the abyss of absolute poverty is a key measure of social 2014 budget presented by the Minister of Finance.

The budget provides a better account for the elderly and provides an increase of 3.7% on the pension. Those aged 60 to 89 people, who are total some 175,000 receive a monthly basic pension of Rs 3,623, while beneficiaries aged 90-99 will receive Rs 10,789. The monthly pension for centenarians increased from Rs 11,800 to Rs 12,300.

The increase of 3.7%, is also valid for all social benefits which are beneficial to the number of about 20 000. However, many households do not receive any assistance despite the fact that they are very poor. To address this problem, the 2014 budget allocates a budget of Rs 100 million to the Department of Social Security for a program of support to some 8,000 vulnerable families living below the Poverty Line Intervention fixed at Rs 6200.

Seniors have the option to continue to receive medical home visit or to receive an allocation of an amount of Rs 6000 per year. The government plans a 'alarm bracelet for 1000 seniors and people with severe disabilities. An additional amount of Rs 12 million to complete the recreation center in Pointe-aux-Piments and proposed a fourth Riambel leisure center are also planned in the budget.

The Special Allowances for children with severe disabilities who were limited to those aged 15 years or less, will be extended to adolescents 18 years. The government will launch the Social Impact Bonds in 2014, with rehabilitation programs for former prisoners and drug addicts. Provision of a budget of Rs 24 million has been made for the construction of two additional wings Trochetia fireplace. To protect children and women at risk, the budget provision for the organization of "Focus on the Family." The Ministry of Gender equality, development of the child and the family then publish action plans, among other things, child prostitution, domestic violence and teen pregnancy.

Some 40 doctors will be trained in Bordeaux and London

The government wants to give a new boost to the health sector in Mauritius. The Finance Minister Xavier-Luc Duval, said that the health of Mauritians still a priority. Thus, an amount of Rs 9.2 billion will be allocated and important steps taken to improve health services in 2014.

"In 2014, the government will do its best to provide good quality care to patients," said XLD. The creation of a National Cancer Agency and a national registry for diabetes as well as the recruitment of four diabetologists, 33 specialists to ensure 24h/24 service in hospitals, 36 doctors for Accident and Emergency Units of 300 nurses are the flagship projects.

Mauritians who have to travel abroad for surgery receive Rs 800,000 instead of Rs 500,000 from 2014. "The government will spend Rs 50 million for the Overseas Treatment Scheme 'in 2014."

Construction underway in regional hospitals will continue. Three Mediclinics at a cost of Rs 38 million, will be built in Goodlands, Stanley and Floreal. The Community Health Centers of Baie du Tombeau and Phoenix will also be renovated. A sum of Rs 11 million will be allocated for the renovation of the health center in Bamboo.

"About 40 doctors will be trained in the universities of Bordeaux and London," said Xavier-Luc Duval. "We will establish a system for the" Family Doctors "can provide care in health centers."

Fiscal measures to help the people

Several tax measures were announced in the third budget Finance Minister Xavier-Luc Duval. These measures aim to protect the environment and help people. An amount of Re 1 will dorénavent levied on the sale of each liter of petroleum products for the replacement of buses and avoid other deadly accidents like Soreze. Abolition of the VAT is provided on bus chassis for easy replacement. The abolition of VAT will also be applied to the photovoltaic cells to encourage the use of renewable energy in the context of Maurice Ile Durable project. The refund of VAT on the purchase of specific equipment to small farmers and ranchers who are not registered with the Mauritius Revenue Authority (MRA) - a measure introduced two years ago - will be maintained.

In the area of construction, the government will pay the VAT to an amount not exceeding Rs 300,000 individuals during the first construction of a house or apartment, the cost does not exceed Rs 2.5 million. However, the monthly salary of the individual should not exceed Rs 50,000.

One of the measures announced in the budget is the VAT refund to manufacturers and retailers. Since many products from local consumption as tea, milk, butter, cheese, curd, honey, soy, ham, rice, meat and sausages are no longer exempt from VAT but will be 'zero-rated', producers and traders will be reimbursed for the VAT incurred. This will lower the prices of these products eventually. There will be no tariffs on many products such as tea, spices, flour, salt, edible oil, margarine, toilet paper, soap, doors and windows, painting, iron bars, furniture and other products imported from African countries as part of the Southern African Development Community (SADC).

Another measure is the abolition of tax on bio pesticides, medical sterilizers and X-ray films Motorcycles with a cylinder capacity of 201 to 250 will not be taxed 45% excise tax. Vehicle taxation based on the rate of carbon emissions will be reviewed on 9 November.

An excise duty of 25% will be applied to the energy-consuming equipment, such as household air-conditioners, electric lamps and dryer and 30% of the fireworks. The excise duty on alcoholic beverages and cigarettes will increase by 5% with immediate effect. The transfer fee on vehicles will increase by 30% from November 9 with the exception of rights on the transfer of a motorcycle not exceeding 250cc.

All 'Income Exemption Threshold' taxpayers increase of Rs 5000, which will represent a saving of Rs 750 annually in taxes to pay. The tax on banks will be calculated on a rate of 10% on taxable income for transactions with Mauritian residents. In addition, companies will continue to contribute 2% Corporate Social Responsibility (CSR) and from 1 January 2014, the 'Land Transfer Tax' will be a flat rate of 5% instead of 10% on the sale of a property for less than five years.

Help women find employment

A "Back to Work Program" to tackle the problem of unemployment among women. It is proposed that the Minister of Finance. This involves the training of women in a couple of areas. Rs 100 million will be invested in the new program.

Introduced last year, the Youth Employment Programme (YEP) is maintained. This program aims to help young people enter the labor market. YEP with a budget of Rs 275 M. To date, 3,500 youth were placed in 350 companies. A Dual-Apprenticeship Scheme will emerge still in the aim of helping young people to find employment. The allowance to trainees will be reviewed upwards. In addition, a survey of the evolution of the labor market will be published every six months to notify the unemployed opportunities available.

Improve the purchasing power of consumers

The Finance Minister Xavier-Luc Duval, announced a series of measures to ensure the well-being of consumers. The purchasing power is central to the concerns of consumers, particularly for low-income families. Measures will be implemented to improve their purchasing power.

The PRB report and 'Errors, Failure and Anomalies Commission (EECA) Reports have been' implemented 'this year. This represents an increase of about 25 per cent of wages.

According to EECA report, public sector employees receive an additional increase in 2014. For the first time, the percentage of private sector employees receiving full compensation that will reach 86 percent.

The Ministry of Industry, Trade and Consumer Protection will propose a new draft law on consumer protection to replace the Fair Trading Act 1979 and the Consumer Protection Act 1991. A National Consumer Council and Consumer Welfare Fund will also be established.

To reduce the amount of electricity bills, CEB intends to install prepaid meters. These will be offered to some families with facilities for payment. Families whose income is Rs 15,000, will benefit from the Water Tank Scheme. Some Rs 30 million will be allocated for this project.

The Minister of Finance is proposing a series of measures for those who borrow money from banks.

Abolition of CPE and the introduction of 'nine year schooling'

The budget allocated to the education sector is Rs 14.8 billion, an increase of Rs 11.2 compared to 2013. Grand treasurer pointed out that the government is committed to improving the quality of education and wants to give the opportunity for all children to succeed.

A key measure of the budget in 2014 is the introduction of 'Nine-Year Schooling,' in the education sector. According to the Minister of Finance, the government has decided that no child will be treated as being at risk of failing to CPE, after extensive consultation with the Ministry of Education and as a result of hosting the "Assizes Education ".

Xavier-Luc Duval said that 25% of students fail the CPE at the first attempt and must carry this trauma throughout their lives. According to him, most of the failures are not due to a lack of capacity in children. "With the introduction of the 'Nine-Year Schooling' CPE exams will soon be things of the past," he said.

After the decision of the Ministry of Education to suspend the distribution of hot meals in ZEP schools in February 2013, this after several cases of food poisoning, the Grand treasurer announced the reintroduction of the project in the second quarter of 2014, at a cost of Rs 130 million. He said that strict hygiene conditions are met. ZEP schools equipped kitchens and appropriate places for lunch. He also announced an increase of 30% of the budget allocation for the PTA program, to the tune of Rs 440 million.

An innovative educational project on a pilot basis, will begin in six schools with low academic performance were noted.

This project will be implemented in 2014, in collaboration with Essa Foundation which is in Britain and the African Development Bank.

The Essa Foundation is a private educational institution, specializing in student learning difficulties in school. The school focuses on a new pedagogy, and the commitment of teachers and parents. Therefore, academic performance improves significantly.

Grand treasurer announced that the sum of Rs 32 million will also be allocated for the construction and expansion of three "Special Needs Education Centers" in primary schools in Rivière-des-Eels, Flacq and Plaine Magnien. In addition, Rs 20 million will be allocated for the rehabilitation of school

Primary D. Sewraz Triolet.

In the budget speech last year, the government announced the distribution of tablet PCs to students in Form IV in 2013. But as the proceedings took time, distribution will take place in January 2014. Grand treasurer added that students in Form IV and Form V have their shelves in 2014. Rs 243 million will be allocated for the provision of tablets to college. The latter will, however, pay Rs 650 as insurance. Children from families on the "Social Register" benefit from free access to the Internet and will not have to pay insurance costs.

Another key measure of government for the establishment of a regional center by July 2014 to train technicians in aircraft maintenance and possibly pilot. This initiative is part of the promotion of the development of an "Airport Hub".

The bagman announced the establishment of an independent evaluation system, the Independent Rating System 'in all universities.

The results will be made public to promote transparency and fairness. Xavier Duval also noted that the government will provide Rs 100 million to fund research and innovation projects. A 'National Research and Innovation Advisory Committee' will also be created.

For art finds its nobility

The Board of Investment confidently expects that the film industry generates half a billion rupees in 2014 with the 'Film Rebate Scheme' and much more thereafter. An amount of Rs 40 million more will be disbursed for the completion of Phase 2 of the renovation of the Plaza and some Rs 13 million for one of Serge Constantin Theatre. While another envelope Rs 40 million will be disbursed for reconstruction Forum Curepipe.

A grant of Rs 100,000 will be provided for the purchase of musical instruments with the aim of forming bands. Be followed by a national competition dedicated to schools. In addition, Rs 10 million will be disbursed for renovation costs at the tomb of Father Laval. A national cultural troupe will be created with a fund of Rs 5 million. There will also be the introduction of a 'Sanskrit Speaking Union'. This was announced Xavier Luc Duval, during the budget speech on Friday. He expressed his wish that young release their creativity through music. He also helped to optimize assets and announced that the Prime Minister's office will proceed with the licensing of operators of local private channels.

The film industry is a multibillion dollar global company, the minister said, adding that the 'Mauritius Film Rebate Scheme has generated great interest among filmmakers for shooting in Mauritius. "This year, seven films have been approved under this rebate program and the estimated expenditure amounted to Rs 170 million but it is important to note that the money spent is none other than the transfer of knowledge and opportunities for our artists, actors and musicians to acquire various and necessary filmmaking skills, among others, he said. To enable young Mauritians to develop a career in the film industry, 'Youth Employment Program will develop targeted courses for this purpose. "

Focus on safety

Following the recent floods and growing environmental concerns, the Grand treasurer did not skimp on the means to provide significant funding for the environment in the 2014 budget.

A total of Rs 6 billion has been allocated to implement a wide range of projects related to Maurice Ile Durable (MID). This will especially for greater use of renewable energy, protection of lagoons and aquifers, sustainable food production and rehabilitation of natural reserves and parks, among others.

In addition, the decision to remove VAT on photovoltaic panels that will reduce costs by 15% has been acclaimed in the Chamber. This decision aims to encourage the production of renewable energy. A program of development of biomass will be presented in the MID Fund to promote and encourage small farmers to grow crops that will be effective sources of biomass energy.

Natural disasters are unpredictable and unavoidable, the Minister of Finance is focused on strengthening the security of the population in order to limit the damage and casualties.

In this context, a National Disaster Risk Reduction and Management Center and a warning system at a cost of Rs 35 million will be put in place. Improve systems for drains suites to the recent flooding is more than necessary and the recruitment of more than 100 firefighters.

The establishment of a Land Drainage System Agency will take over responsibility for the maintenance and cleaning of drainage systems across the country is well planned. Under the new structure, the culture of Arundo donax plants could provide a substitute for coal and could be extended on a commercial basis.

Our beaches are a national pride and an important part of our tourism industry, Rs 100 million has been allocated to the Environment and Sustainable Development for a 'Beach Re-profiling Program beaches of Mauritius, for the erosion significantly abyss . Rehabilitation of coral reefs is also included in this project. The beaches of Flic en Flac, Le Morne and Blue Bay will be filled with sand again.

In another register, Xavier-Luc Duval announced that the number of brownfield sites across the country is an alarming problem that must be solved absolutely. Existing laws concerning the maintenance of private land and abandoned premises will be tightened as brownfields and vacant are a nuisance and a danger to the safety of neighbors.

ICT / BPO lower IPLC prices

"The ICT / BPO sector is one of the fastest growing our economy in terms of job creation for our youth at a rapid pace. But he must constantly adapt to change to stay competitive globally. The Department of Information Technology and Communication (ICT) will reduce the additional costs of international bandwidth, improve the Internet connection while ensuring quality and developing skills, "said the Grand treasurer.

The finance minister also announced and the price of international bandwidth (International Private Lease Circuit - IPLC) will be reduced by 16% from January 2014. This reduction is in addition to a total reduction of 80% made since 2005.

On the other hand, some 8,000 houses have been connected this year by the optical fiber. Xavier Luc Duval said that next year, an additional 50,000 households will be connected to the Internet via optical fiber at speeds up to 30 Mbps, which is one of the best deals in the southern hemisphere, he says. This project requires an investment of Rs 7 billion by operators over the next five years.

Moreover, to improve the Internet connection with East Africa, a 'cross-connection' of LION and SEAS cable systems submarine fiber optic will be established between Mauritius and the Seychelles.

Ensure the quality of services is as important as offering competitive prices, according to the Grand treasurer.

Internet providers will offer consumers a certain level of service to the proposed Internet package.

Rs 400 million for the stoning of land in 2014

The abandoned land, a real headache today. Thus, the government will allocate Rs 400 million FORIP to prevent land abandonment and improve productivity. This was announced by the Minister of Finance on Friday.

A sum of Rs 30 million will be allocated to the farmers continue to benefit from Compost Subsidy Scheme. Several measures will be taken as well, including the extension of the lease on equipment under the Planters' Harvest Scheme. The Bank of Mauritius will provide Rs 1.3 billion to maintain the 'Advance Payment' of 80% is done on delivery to the sugar industries.

Xavier-Luc Duval has focused on the 'Seed Industry', a new project.

A budget of Rs 3 million will be allocated for the establishment of a National Plant Varieties and Seed Office within minsitre Agro-industry. The government will pay a sum of Rs 4 million to finance the purchase of 75% of nets that will help farmers and fruit growers to protect against fruit bats.

The minister also announced that for the purchase of agricultural machinery, equipment and tools, repayment plan, launched in 2012, will be maintained.

Funds will be allocated to control the use of pesticides in the fields. Farmers receive a grant. A sum of Rs 4 million will be allocated for "cutting rooms" for the benefit of farmers pigs.

An amount of Rs 541.1 million for the sport

Once again, Xavier-Luc Duval, did not hesitate to dip into the coffers to improve the Mauritian sport. The top-level sport and football were mentioned as the construction of new infrastructure.

The top-level sport is mainly focused towards young people where sports studies provide 450 scholarships through the Hope Pole. The state grants offering our best young people to develop abroad, also known up. As monthly scholarships 'High Level Sports Unit'.

Meanwhile the future presentation of the "New Sports Bill," Xavier-Luc Duval has already announced measures to revive the king of sports. To restore color to the local football, the government has decided to return to the old system involving teams like the "Fire Brigade" and "Sunrise". However, no communal overtones will not be tolerated and strict rules will apply. To help clubs and players to professionalize the Minister will pay Rs 10 million to launch a league of ten teams.

The handisportifs not be left because the government, through the GSA will host in 2014, a national competition involving Mauritian handisportifs.

The allocation for infrastructure has also taken the elevator with an amount of Rs 387 million. The two largest projects are a multi-sport Triolet and The Source complex. New soccer fields will also be built in the West and South. Some facilities will be upgrades, as Maryse Justin Stadium in Reduced and the Camp King in Rodrigues. In total, the sports budget will be Rs 541.1 million for 2014.

"I want to thank the Prime Minister and my colleague, the Minister of Finance, for the good budget, but also for the beautiful hand made sport. I also welcome the initiative taken by the government to revive the king sport. I am confident that these measures will delight sports population in general, "he told Devanand Ritoo, Minister of Youth and Sports to Matinal after the budget presentation.

Rs 8.7 billion allocated for public safety

A budget of Rs 8.7 billion to provide better security to citizens in 2014 and the recruitment of 700 police officers in order to ensure better visibility in the public. This was announced Xavier-Luc Duval. And add a series of measures to combat crime, including the installation of CCTV cameras in Beau Bassin, Rose Hill, Quatre-Bornes and Sodnac be taken.Great fundraiser was also part of the acquisition of advanced equipment for the Forensic Science Laboratory. A 'Serious Fraud Squad' will be set up to track companies operating illegally in the financial field. Recall that the scandal 'Ponzi Schemes' has lost more than one billion rupees to thousands of investors. This squad should eliminate these illegal companies.

XLD has increased the amount of fines eligible to be commuted to community service instead of imprisonment, Rs 25,000 to Rs 30,000. Regarding the prison service, the'' Open Prison Facility 'far limited to detention centers for men, will be extended to the women's prison. A new facility adjacent to the Barthelemy Prison in Beau Bassin, will be the first Open Prison Facility 'dedicated to women. Are also planned renovation of our 'district' courts and the Supreme Court as well as the construction of new courts at a cost of Rs 750 M. One hundred fire brigade will be recruited during 2014, said Minister of Finance.

Give a boost to aquaculture

More drastic measures have been taken through the 2014 budget in order to give new impetus to the fisheries sector. In addition to strengthening the 'Seafood Hub' and the banishment of the fishing net, the government also plans to give a new impetus to the marine aquaculture in Mauritius.

As part of its strategy to make Mauritius a 'Seafood Hub' of World class to strengthen the fishing industry, the government plans to invest Rs 2.1 billion in the tuna fishery, in addition to already injected Rs 2.6 billion this year in the purse and a processing plant fish. This investment could, according to Xavier-Luc Duval, report some 40 000 tonnes of fish per year and export earnings of up to Rs 2.4 billion.

In Mauritius, marine aquaculture on an industrial scale takes off . Currently some 500 to 600 tons are produced on two sites 70% for exports. The Finance Minister Xavier-Luc Duval, said three sites will be added over the next two years to double production. Also, encourage fishermen to turn to aquaculture facilities involving several financial and technical level to them is one of the objectives of the government. Grand treasurer said that next year, Rs 8 million will be injected within the Ministry of Fisheries for the purchase of 20 floating cages in aquaculture, in addition to eight already installed to date. "This is in response to the growing interest expressed by fishermen for small-scale aquaculture," he has said.

It is worth noting that Rs 5 million will be invested in the repopulation of the Mauritian lagoons. This follows the success of the program that began in 2012. Moreover, serious measures will be taken to ban in the near future the net fishing and the gillnet, according to Xavier-Luc Duval, is incompatible with the logic of rebuilding our lagoons. Also, as an added incentive, the 21 fishing cooperatives and associations will be eligible for a 50% increase in the compensation package offered to date. They will be encouraged to turn to aquaculture through the provision of floating cages as mentioned above. Measures will be taken to encourage the fishing out of our lagoons, providing 50% subsidy for the purchase of boats, up to Rs 200,000 per boat.

Rs 4.7 billion for clean Mauritius

Rs 4.7 billion allocated to the Ministry of Local Government, including budget allocation dedicated to local authorities and other key units.

"It is essential to keep our own island and the Grant-in-Aid (GIA) municipalities and village councils receive annually from the government has been increased, from Rs 500 million to Rs 2.5 billion, "said Minister of Finance, Xavier-Luc Duval. Rs 185 million have been allocated to replace the trucks with more than 12 years for garbage collection.

Grand treasurer added that local authorities have an important role to play for Mauritius 'clean' and thus the budget has been revised from Rs 1 billion to Rs 4.7 billion. Furthermore, an additional sum of Rs 210 million has been agreed for the infrastructure and for cleaning wasteland and abandoned in the developed areas.

The Local Government Act will be amended and tightened to allow municipalities and councils Village impose owners closing their land in residential areas. As for solid waste, the finance minister said that the recycling and disposal of solid waste remains a priority. Thus, a sum of Rs 30 million has been allocated to encourage the collection and exportation of plastic bottles.

According to Xavier Duval, the delay in the delivery of 'Building and Land Use Permits', is one of the factors that limit economic growth . The Ministry of Local Government will undertake, and the creation of an E-Monitoring system 'to track requests' Building and Land Use Permits', whether municipal or district councils.

Rs 200 million for two new industrial parks

Xavier-Luc Duval has announced that the budget for the 'Mauritius Business Growth Scheme' (MBGS) increase of Rs 80 million and two new industrial parks will be built in Solitude and Plaine Magnien at a cost of Rs 200 million. These parks provide 80 additional spaces for small and medium enterprises (SMEs).

In 2012, the government has provided 6% of the products and services of SMEs and by Xavier-Luc Duval, by 2013, the government will almost double its purchases to SMEs by 11%. The increase in purchases from SMEs is the result of measures taken in the last two budgets. The minister said that the government wants the market share of the SME to 2% over the next three years. And stated that the Department of Business and Cooperatives organize a 'National Inclusive Business Award' to recognize the efforts of SMEs.

For the Minister of Finance, an online presence can significantly improve the visibility and sales a business. Xavier-Luc Duval said the government wants that in 2014, all SMEs in Mauritius have an online presence. Thus, the government provide free web for all SMEs a site. These sites will be provided by Ebene and Port Louis Accelerators. The government will also continue the plan to pay Rs 200,000 annually for the SMEs to participate in international fairs. In 2014, the High Treasurer has allocated an additional amount of Rs 50 million.

Minister added that the government will guarantee up to 70% of loans that will acquire SMEs. This measure will cost Rs 750 million to the state.

A tunnel through the montagne des Signaux

The government continues to invest in public infrastructure as a way to stimulate growth, improve the well-being of the public. A priority of this government in this budget is to make road traffic more fluid and more comfortable buses. According to Deputy Prime Minister and Finance Minister Xavier-Luc Duval, road congestion caused losses of about Rs 4 billion annually in the country.

Minister said that new projects are designed to alleviate congestion on our roads including the construction of a roundabout junction with Phoenix and Jumbo, the construction of a bridge over the River Great River Northwest to connect Coromandel-Soreze on the M1 and the construction of a tunnel through montagne des Signaux to Champ-de-Mars.

Changes are also expected on public transport. The government intends to propose in 2014 a 'Bus Replacement Mechanism'. This will allow bus companies to buy up to 200 bus 'semi-low floor' per year. This facility will allow a grant of Rs 1 million per bus, and will be financed by a levy of one rupee per liter on petroleum products. The government will also remove the VAT on such bus. Percent more buses will be purchased by the National Transport Company in 2014. Procedures have already been engaged.

Regarding the 'Mauritius Light Rail Transit Project', Duval said there was progress. This project will involve Curepipe and Port Louis in a first phase. This is the Singapore Cooperation Enterprise, which is currently providing advisory services to prepare the project. A tender has been launched. Of 11 bidders, six were shortlisted and invited to submit their proposals.