Victoria: The leader of the opposition and the leader of government business at the National Assembly of Seychelles presented their responses on Tuesday to the proposed 2025 budget by Finance Minister Naadir Hassan.
According to Seychelles News Agency, Minister Hassan is seeking approval from the National Assembly for an 11.9 billion SCR ($880 million) budget, marking the largest in the country’s history. This figure reflects an 11.9% increase compared to the 2024 budget, which was 10.6 billion SCR ($731 million).
In his response, opposition leader Sébastien Pillay labeled the budget as an “electoral budget,” suggesting it is full of promises and projects but fails to deceive anyone. His comments are made in light of the upcoming presidential and parliamentary elections scheduled for September 2025. Pillay remarked that despite minor increases, the budget lacks substantial measures to help Seychellois tackle the rising cost of living and does not propose revitalization for the private sector. He noted that
economic growth is slowing while the list of projects continues to expand.
Pillay expressed concerns over how this record-sized budget would be financed, particularly pointing out the drop in tourism revenues by 1.3 billion SCR due to poorly intended measures, compared to the same period in 2023. He questioned how the government plans to fund all these projects if the economy is slowing, as tourism revenues in August 2024 totaled $539 million, 17% less than the same period in 2023.
The budget also proposes a 7% increase in the monthly base salary for civil servants earning less than 21,368 SCR, ensuring a minimum increment of 500 SCR ($37) for all full-time employees, according to the minister. Pillay questioned whether this increase truly reflects the cost of living in the country, if it will substantially benefit the population, and why it would only take effect in April 2025. He also criticized the lack of a plan for private sector workers and questioned whether the sector was consulted about the minimum
wage increase.
Addressing the issue of drug problems, Pillay asked if the government had a solution for methadone-related issues and whether they planned to seek a resolution if not. He concluded that the minister’s speech failed to analyze and address the country’s situation effectively.
Meanwhile, Bernard Georges, the leader of government business, stated that Seychelles’ economic situation has improved, reaching a budget surplus. He claimed the government is now in a position to meet the needs of the population and share the benefits of good economic management. Seychelles is projected to achieve a primary budget surplus of 1.1% in 2024.
Georges noted that due to increased construction material costs, Housing Finance Corporation loans have risen, and the base salary has increased to put more money into workers’ pockets. He stated, “In this budget, there is something for everyone.” He emphasized that the government has listened to the population and announced several measures, including the establishment
of a commercial court to handle all business matters and the implementation of a “zero bureaucracy” policy.
He concluded by stating that these measures represent a significant step forward in addressing the needs of a modern population wishing to progress. Georges added that the budget includes measures to improve the lives of Seychellois, such as providing the opportunity to purchase public land to expand family properties or add a new floor to a house.