Former Prime Minister, Mahendra Chaudhry says Finance Minister, Prof Biman Prasad should refrain from trying to fool the people and should wait until figures are available for this entire year to make a more realistic comparison about Government finances.
Chaudhry in a statement said Prof Prasad gloats about improved Government finances with higher revenue but it should be noted that is at the expense of imposing greater
hardship on our people.
“It is the ordinary families who have had to dig deep into their pockets to fund this
Government through higher VAT and other taxes.”
“The 6 per cent increase in VAT on almost all goods and services in the 2023/24 Budget
delivered a major blow to families already struggling to cope with a higher cost of
living.”
He said it is totally insensitive of the Minister to claim that the impact of the 6 per cent increase in VAT was “just temporary”.
“The 6% increase hits our poor families every time they turn up at the supermarket to buy their weekly groceries.”
“The increase is across the board and ongoing – felt through higher bus fares, higher water, electricity and phone charges, higher charges for Government fees and services – there is nothing temporary about it.”
“The premium for Third Party policies, for instance, went up substantially by almost
100 per cent.”
“Increases in the budget for health and welfare were dictated by increasing cost of
living and to mitigate against the per cent increase in VAT, and therefore, do not represent a real increase at all.”
He said the continuing boost in tourism in the past couple of years has contributed to Government’s improved financial status, however, the IMF has predicted tourism
numbers will fall in the coming months.
“It should also be noted that the Government is not releasing funds for capital projects in a timely manner in a bid to cut costs.”
“We have already noted that revenue figures are down for January and February this
year reflecting a serious slowdown in economic activity. Most businesses are complaining of reduced sales as consumers feel the pinch with a rising cost of living.”
“The Minister talks of a reduction in flour prices. Flour prices fluctuate markedly in line
with global prices, Minister. We have no control over it.”
“But we can control imposing unjustified VAT on our people and making life more
difficult for them.”
Chaudhry is also calling on Prasad to release the figures for Girmit accounts promised in May last year.
