Acim Advocates for a Revision of Universal Subsidies

For Jayen Chellum, the Secretary General of the Consumers' Association of Mauritius (Acim), the issue at hand is not merely about rising prices. It's about a subsidy system that is fundamentally misaligned. The Acim's assessment is straightforward: subsidies on rice, household gas, and flour benefit everyone, including those who do not need them: "Those with high incomes benefit from these cross-subsidies just as much as the most vulnerable."

As a result, a public fund intended to protect the weakest is diluted across the entire population, lacking targeting and real effectiveness. "Universal subsidies perpetuate inequalities," he states decisively.

The solution he advocates is clear: revamp the distribution of these subsidies to focus on those who need them most, rather than sprinkling them evenly. Such a reallocation would not necessarily cost the state more, but it would better protect the most vulnerable households.

Recent price hikes concretely illustrate this unequal treatment. The increase in fuel prices only affects those who own a vehicle, he argues. The rise in household gas impacts all families indiscriminately. The bread price hike will weigh more heavily on larger families. "In one way or another, this will significantly impact everyone’s monthly budget," acknowledges Jayen Chellum, but not in the same manner, depending on income.

Those at the top of the social ladder do not need subsidies to absorb these increases. Those registered in the Social Registry benefit from a safety net. There remains a category in between: the middle class, who receive no state support and are hit hard by the domino effect of successive increases. "With the various hikes, those in the middle class who do not receive state assistance are experiencing a loss of purchasing power," laments the Secretary General of Acim.

He warns that this erosion is not temporary. It is persistent and affects not only the middle class but also those at the bottom, even among state aid recipients, for whom compensations remain insufficient in the face of rapid increases.