Mauritius

November 06, 2013

Municipalities: Budget Deficits of Rs 480 Million

The financial situation of the five municipalities is difficult with an estimated Rs 480 million for the 2014 budget deficits. This mainly due to an increase in payroll with the implementation of the report of the Pay Research Bureau (PRB) and one written by Dev Manraj. Thus, large projects have been suspended pending a better tomorrow.

The Ministry of Local Government, it announces upward revision of Grant-in-Aid. It is the sum allocated by the central government to municipalities in the next budget.

However, municipal officials remain skeptical, especially with regard to the absorption or the deficit at a reasonable level. Among the proposals from elected officials to limit the damage, are an increase in urban taxes and downward revision of the allocation for socio-cultural organizations. However, these proposals are not unanimous.

Municipalities forced to review their priorities

The financial situation forces, municipalities have been forced to rethink their priorities for 2014, highlighting outstanding projects requiring large investments. Indeed, the five municipalities presented budget deficits of around Rs 480 million.

The budget for the city of Port Louis is estimated at Rs 812 M. The budget deficit would amount to Rs 155 M. In the dock: payroll. The Lord Mayor said he developed a strategy that will reduce the deficit.

Among his proposals include the installation of advertising signs paid to North Station and Victoria Station, the need for street machands to regulate in terms of payment of operating permit, the introduction of a new tax compared to horse racing and the removal of the value added tax on the purchase of garbage.

Same situation for the city of Vacoas / Phoenix, which due to the burden of the PRB report, foresees a budget deficit of Rs 101 M.

The budget for the twin city is estimated at Rs 563 M. Among the survivors projects include the renovation of the fair Vacoas at a cost of Rs 10 million and the construction of a mixed-use complex at Rs 5 M.

A Beau-Bassin/Rose-Hill is austerity with one big project in the program, the renovation of the Plaza Theatre. The budget for the sister city for 2014 is estimated at Rs 398 million, while the budget deficit is estimated at Rs 73 million. The trend is the same in Curepipe, with an estimated about Rs 70 million deficit. 

 

Text by Le Matinal
 

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