Opinion - Budget outlook |17 February 2017

I would be very grateful if you could grant me some quality space in your esteemed newspaper to comment on the fundamental aspects of Budget 2017.

Over the years we’ve seen budget forecasts which have given rise to actual budget insufficiencies in the wake of supplementary budgets and monopolistic competitions, anticipated annual subventions to parastatals, import driven approaches, unanticipated and impromptu economic developments, consumer outbreak spending patterns and the lack of committed and proper management of public funds, endorsed by the requirement for more foreign exchange.

The objective general public has witnessed a rise in capital projects, such as housing (on social grounds and for the benefit of the brotherhood), but some have contributed to increasing government liabilities and foreign debts. The Budget 2017 plans to reduce those hardships and has as principle objective “to accelerate economic activity in creating more wealth and employment; so that no one will be left behind in our development. The wealth created will be distributed to all in a fair, equal and transparent manner!

The budget, which is a financial plan converted into quantitative terms, face a considerable increase in contrast to the Budget for the year 2016. The 2017 Budget ‘Inclusive Development – Opportunities for all’ containing a Budget Appropriation of SR7,796,480,879.00 for Fiscal Year 2017 is a record so far; and is projected for a budget surplus of 3% of GDP, which will be achieved through more discipline in the manner in which Government runs the business. I am totally in favour of the five basic principles by which Government must conduct its operations, but what remains to be accounted for at the end of the road of the fiscal year is the disciplinary commitments adopted by the custodians of the public funds, accountability, positive thinking with transparency decision-makings and the viability of implementation of the ideas in the wake of the budget for the benefit of the stakeholders.

Economic performance 2016 - Our economy continues to experience growth. For the year 2016, growth projection was revised upwards from 4.3% to 4.4%. For the Year 2017, the real Gross Domestic Product (GDP) is projected at 4.1%. Despite a marginal decrease, this trend is encouraging for Seychelles, when other countries are struggling to register growth. The rate of inflation was projected to reach 3.7% principally driven by an increase in fuel and electricity prices. According to our latest national statistic, our income per capita has reached US $14,760.

We should stay focused and in line with the budget targets and not depart unnecessarily from our principal objectives. Restructuring is a strategic move since the payroll forms part of the greatest budget allocation within the centralised figures.

The Government should adopt the principle of good governance, transparency and strategic accountability in its managerial and also financial decision-making. “Wastage and unnecessary expenditure” should be written-off, while monitoring, analysis and reporting of performance to Government should be continual commitments from the ministries. Reviews and feedback should reach out to the stakeholders.

Budget Education – We have to come to terms that the Seychellois public is budget-concerned but many of the ordinary people are lost in its figures. Future trend shows that there is an importance for such PR from the budget to the craving citizens, who at the end of the day is part and parcel of the budget. There are many ways to implement this strategy, and believe me, the budget will have a greater range of acceptance!

Another very important factor to the way forward is the need for us all actors of the economy to work together in National Unity, not just for the private sector to be more effective in creating wealth, but also for them to have the opportunity to participate in efficient and effective decision-making. For once the private sector has the mutual sense of belonging to the budget; they will have open wings for viable investments and long-term commitments. Foreign exchange, which concerns all the stakeholders and is a very strategic subject to comment on, should be at the reach of every individual Seychellois whereby devaluation should stand a world apart. Maybe we have not taken the facts of “Globalization” at heart and continue to survive in our parsimonious environment.

This I will let the experts debate upon.

Another point of outlook is the overview of the budget. I sincerely believe that accounting officers should refrain from the adoptive expense minded decisions but rather nurture the more conservative and matching approach for expenses incurred. The need for being innovative and come up with ‘viable’ ideas, will be a plus to the budget, not just for better revenue strategies, but to reduce costs to the minimum.

As a conservative, I would like to see projected figures in the budget forecasts for revenue to be collected and contingency fees. Every forecast must have a planned policy in order to materialise the plan, and this has financial implications which constitute the budget. Thus, the time has come for the Government to adopt the principles of a business entity and the school of thought of the accrual concept.

I anticipate the Budget 2017 will pave the way for a positive change for a better tomorrow for the Seychellois people, bearing in mind our past achievements and the social environment that we operate in. I praise the Lord to continue overlooking our little archipelago Seychelles and bless us with the morning sun, pure rain water and the “joie de vie” that we Seychellois have cherished. Long live Seychelles and a prosperous year 2017 to all Seychellois.

Jacob Terence Madeleine, ACSI

Writer, Poet, Singer

Disclaimer

The views expressed in this opinion piece are those of the author and do not necessarily represent the views of the Seychelles NATION newspaper.