Economists call this the Budget that has to refill your wallet
With inflation stubborn, debt high and growth slowing, the 2026-2027 Budget is shaping into a test the government cannot fail quietly. Economists broadly agree on one thing: the room to act exists, but only if relief is aimed straight at household spending power.
Observer Tahir Wahab argues the state has collected far more tax than it lets on, partly by dropping the VAT threshold for small firms from Rs 6 million to Rs 3 million, and partly because every fuel hike and supermarket price rise feeds more VAT into the treasury. His point is blunt. That windfall came out of your pocket.
Two fuel hikes this year quietly turned the cost-of-living crisis into a revenue stream, and now the question is who gets it back.
The fund that keeps petrol cheap is now Rs 3.5 billion in the red
The Price Stabilisation Account, the buffer the State Trading Corporation uses to keep pump prices steady, has sunk to a Rs 3.5 billion deficit. It was Rs 1.5 billion in February. More than Rs 2 billion of red ink in three months.
Without state cushioning, the Commerce ministry says petrol would have blown past Rs 79 instead of today's Rs 64.25. Petrol is already up over 22 percent this year, diesel over 11. The ministry blames the Middle East conflict and says fuel taxes fund social benefits.
The MMM closes ranks and calls the Uteem clash childish
Gathered at the Plaza in Rose Hill on Saturday, MMM leaders put on a show of unity after a rough week. Deputy leader Ajay Gunness went after an MP and former member he accused of targeting Labour Minister Reza Uteem in the National Assembly, branding the episode political childishness without naming Joanna Bérenger.
Car washes face the first squeeze as the island runs dry
With reservoirs and groundwater at historic lows, a water-saving plan is due within days, and car wash businesses look set to feel the first restrictions on how freely they can hose down a vehicle.
Shorts
Speed bumps promised for Belle Rose street – Residents' complaints won road-safety measures for Draper Avenue.
State asks Parliament for Rs 2.2bn extra – A supplementary appropriation bill seeks Rs 2.264 billion more for 2024-2025.
Pride march returns under Ansam Nou Pli For – Collectif Arc-en-Ciel rallies allies and institutions for equal treatment.
Health ministry widens its anti-tobacco push – A month-long campaign and shop checks target vaping among the young.
Forestry saves historic GRNO bridge stones – Crews cleared creeping roots strangling the old Grande Riviere Nord Ouest bridge.
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