An economy under breathing machine until 2010

The Treasury secretary Hery Rajaonarimampianina did not respond favourably to the private sector’s requests, but did not bluntly turned them down either. “You will not be asking for whatever you have so far been denied now that the country is in the midst of a crisis”, he declared to Madagascar’s corporations and industries’ big fishes. The demands addressed the deletion or lowering of custom and various other taxes, in order to give a boost to the economic recovery. Minister Rajaonarimampianina played it prudently. According to him, “we cannot run the risk to decrease tax revenues in 2010, a year of great uncertainty”. The main reason for that is the elections, all the way a significant financial investment and a potential source of conflict and instability. 

The Treasury secretary is forecasting a 2 to 3% growth against 0.6% during the year 2009.  “These are realistic and possible figures that we are going to insert in the year 2010’s budget plan”, moderated the state’s Chancellor of the Checker. “Foreign financial support will come back once international recognition is granted”, he added. The private sector should, therefore, be showing evidence of patience. The Treasury secretary promised that the received proposals would be implemented in due time, together with the situation’s improvement. The asked advantages would cost a few 50 billions of ariary to the state. The concession is currently unthinkable; it would be different if foreign financial backing gets restored. Hery Rajaonarimampianina urged to private sector to provide guaranties of these State granted concessions’ return on the spending power and on the country’s economy. In 2009, inflation has been mastered at 9.3%.  

Lowering taxes is, although, not yet a taboo. “If we lower taxes, spending power is going to shoot up”. The Treasury secretary is standing by the resumption of consumption. The strategy will be bound for implementation in 2010; particularly the lowering of the tax income rate to 23% or minus 01 point. Enterprises will, however, have to wait for 2011 to have corporation and turnover taxes belittled. Taxes are the state’s main inner revenue source for providing close to 97% of the returned 1800 billions of ariary in 2009. The customs related return forecasts plummeted. The newly targeted 744 billion ariary, against the finance law’s 1050 billion ariary are about to be reached. The Treasury secretary greeted the performance of the Gasynet software which allowed the mastering of custom transactions. 

  An economy under breathing machine until 2010 

The meeting between the Treasury secretary and the private sector was an information exchange. Far reaching decisions did not emerge either for the re-launch of the economy or for the completion of the Year 2010’s budget plan, but small gestures did. The economic perspective for 2010 is slightly optimistic, with a wee bit more viable growth in expectation of the restoration of foreign helps and big investments. 

The Treasury secretary Hery Rajaonarimampianina did not respond favourably to the private sector’s requests, but did not bluntly turned them down either. “You will not be asking for whatever you have so far been denied now that the country is in the midst of a crisis”, he declared to Madagascar’s corporations and industries’ big fishes. The demands addressed the deletion or lowering of custom and various other taxes, in order to give a boost to the economic recovery. Minister Rajaonarimampianina played it prudently. According to him, “we cannot run the risk to decrease tax revenues in 2010, a year of great uncertainty”. The main reason for that is the elections, all the way a significant financial investment and a potential source of conflict and instability. 

The Treasury secretary is forecasting a 2 to 3% growth against 0.6% during the year 2009.  “These are realistic and possible figures that we are going to insert in the year 2010’s budget plan”, moderated the state’s Chancellor of the Checker. “Foreign financial support will come back once international recognition is granted”, he added. The private sector should, therefore, be showing evidence of patience. The Treasury secretary promised that the received proposals would be implemented in due time, together with the situation’s improvement. The asked advantages would cost a few 50 billions of ariary to the state. The concession is currently unthinkable; it would be different if foreign financial backing gets restored. Hery Rajaonarimampianina urged to private sector to provide guaranties of these State granted concessions’ return on the spending power and on the country’s economy. In 2009, inflation has been mastered at 9.3%.  

Lowering taxes is, although, not yet a taboo. “If we lower taxes, spending power is going to shoot up”. The Treasury secretary is standing by the resumption of consumption. The strategy will be bound for implementation in 2010; particularly the lowering of the tax income rate to 23% or minus 01 point. Enterprises will, however, have to wait for 2011 to have corporation and turnover taxes belittled. Taxes are the state’s main inner revenue source for providing close to 97% of the returned 1800 billions of ariary in 2009. The customs related return forecasts plummeted. The newly targeted 744 billion ariary, against the finance law’s 1050 billion ariary are about to be reached. The Treasury secretary greeted the performance of the Gasynet software which allowed the mastering of custom transactions.