Budget 2025: Seychelles' opposition leader calls it «election» budget, government business leader defends surplus
The Leader of the Opposition and the Leader of Government Business in the National Assembly of Seychelles gave their responses to the 2025 Budget being proposed by the Minister for Finance, Naadir Hassan, on Tuesday.
Hassan is seeking the approval of the National Assembly for a proposed budget of SCR 11.9 billion ($880 million), the largest budget in the history of Seychelles. This represents an increase of 11.9 percent compared to the 2024 Appropriation Act, which was SCR 10.6 billion ($731 million).
In his response, Sebastien Pillay, the Leader of the Opposition, said that the budget presented in the Assembly is an election budget with a lot of promises crammed with several projects but one that does not fool anyone. His allusion refers to the next presidential and parliamentary elections, which will be in September 2025.
“Despite some small increases here or there, there is nothing substantial to help Seychellois cope with the cost of living that has hit the ceiling. There is nothing proposed to revitalise the private sector. Economic growth is slowing, and the project list is increasing even more,” said Pillay.
He said that this budget, the biggest one presented ever, is supposed to address all problems but there yet does not give an indication of how the government will finance it.
“Revenue from tourism has fallen by SCR1.3 billion through ill-intentioned measures compared to the same period in 2023. In the budget document, the minister said that tourism earning as of August 2024, the total tourism earnings amounted to $539 million, and which is 17 percent less than what was recorded for the same period in 2023. If the economy is slowing down where to get the money to finance all these projects?” he asked.
Pillay said that in the 2025 Budget, the government is proposing a 7 percent increase in the basic monthly salary for public servants earning less than 21,368 rupees, and according to the minister this increase guarantees an increase of SCR500 ($37) for all full-time workers.
The questions he asked are whether the increase reflects the cost of living in the country, will bring a real benefit to people and why will this take effect in April 2025.
Pillay said the government did not give its plan for workers in the private sector and asked if the private sector had been consulted on the minimum wage increase.
On the drug problem is an issue, he questioned if the government has a solution for the methadone problem and if not if a solution is being sought.
“When I look at the speech that the minister has made, he has failed to look at the situation and address the situation of our country,” said Pillay.
Meanwhile, the Leader of Government Business, Bernard Georges, said that Seychelles’ economic situation has improved, and the country has a budget surplus.
He said the government has found itself in a position where it can respond to the needs of the people and share the benefits of good management of the economy.
This was in response to the fact that Seychelles is projected to make a primary fiscal surplus of 1.1 percent in 2024.
“Because the cost of construction materials has gone up, loans with the Housing Finance Company (HFC) have also gone up,” said Georges, adding; “The basic salary has also increased, to put more money into the pockets of every worker. […] In this budget, there is something for everyone,” he stated.
Georges said that the government has listened to the people and has announced several measures, such as a commercial court, which will hear all cases related to commerce, and a zero-bureaucracy policy.
“All these, Mr Speaker, are giants steps to respond to the needs of a modern population and who wants to move forward,” he said.
Georges also stated that in this budget, a series of measures have been put in place to allow every Seychellois to be able to improve their lives and that “this includes the scheme where someone can buy a piece of state land to add to that of their parents for development, which has been improved, to allow for a new floor to be added to the house.”
