Budget Highlights 
(2004-2005)

Social Welfare

2. Besides spending on poverty alleviation programmes, Government gives a helping hand to thousands of our citizens through its social welfare system.  I must emphasise that our social welfare policy is guided by the principle that every citizen has a right to a decent life.  The support we give to our citizens should be fair, efficient, effective and sustainable.

3. The Basic Retirement Pension (BRP) is one item of Government transfers that absorbs a lot of our resources.  Presently, there are some 116,000 beneficiaries of Basic Retirement Pension.  A one percent increase in BRP costs Government Rs 28 million.  A number of reports have questioned the long-term sustainability of the Basic Retirement Pension, especially as our population is fast ageing and BRP is fully funded out of Government revenues.  As a responsible Government, we are studying the issue very carefully to map out our strategy on pension reforms.

4.  I said at the outset that our elderly feel they deserve more protection, more care and more recognition.  Their expectations have not gone unnoticed.  We are making a very special effort to increase the BRP rates, in spite of the extremely difficult budgetary situation.  This will be accompanied by a major change in the structure of pension rates.

5.  Presently, persons between 60 and 90 years of age receive a monthly pension of Rs 1,790.  I am introducing two rates for pensioners in that age group.  For those between the age of 60 and 70, I am increasing the rate to Rs 1,900 per month.  For those above 70 and below 90, I am increasing the basic pension to Rs 2,000 i.e. an increase of 12 percent.  The pension rate for those above 90 years of age is being increased to Rs 6,850 and for centenarians to Rs 7,795.

6.  The monthly pension payable to wartime and peacetime ex-servicemen is being increased to Rs 525 and Rs 350, respectively.  Medical and other grants provided to them are being raised by 10 percent.

7.  Our social aid programmes cater for some 17,000 men and women.  To maintain our support to them, I am increasing provision for social aid from Rs 210 million to Rs 225 million.  The grant to charitable institutions will be raised to Rs 40 million and that for the NGO Trust Fund to Rs 14.8 million.

8.  To enable charitable institutions to obtain higher financial contributions, I am doubling the maximum allowable deduction for income tax purposes on donations made by an individual to Rs 40,000.  The ceiling for a company will also be doubled from Rs 200,000 to Rs 400,000.

9.  Under the Social Aid Act, a Carer's Allowance is payable to any parent with a child below the age of 15, who suffers from disability of at least 60 percent and requires constant care and attention.  The annual income of the parent or the aggregate income of the parents should not exceed Rs 100,000.  I am raising this income ceiling to Rs 130,000.

10. I am pleased to announce that we shall be funding a number of social projects and programmes.  These include the construction of new recreation centres at Riambel and Pointe aux Sables, a new Disability Centre also at Pointe aux Sables and renovation works at the Detoxification Centre for substance abusers.

11. Funds will be channelled to NATReSA to continue its unrelenting fight to contain proliferation of alcoholism, drug addiction and HIV/AIDS.  Cash allowances in lieu of blankets to recipients of social aid will be provided.  Bus fares to some 500 disabled children attending day care centres will be refunded.  A Mauritian sign language will be developed.

12. Mr Speaker, Sir, total provision for the Ministry of Social Security, National Solidarity and Senior Citizen Welfare will increase from Rs 5.6 billion to Rs 6.1 billion, that is, by Rs 500 million.