Citing the introduction of the Macro-Economic Reform Programme (MERP) in July 2003 as a positive factor in the domestic economy's performance, Mr Michel explained that:

"The MERP is designed to help Seychelles re-structure its economy and to prepare for the challenges ahead. It is a programme that puts forth an emphasis in restructuring the country’s economic policy, exploring ways to promote growth and raising the living standard. It recognises that the private sector has a role to play in creating wealth and job opportunities."

He went on to add that:

"Government expects a total revenue of R1.8 billion compared to R1.4 billion in 2002. This positive outcome stems out of a rise in current receipts, namely from GST and other revised fees and fines. Total expenditure including current outlays, capital outlays and net lending is expected to be R1.6 billion, which is R45 million less than estimated."

Announcing that the Seychelles authorities intend to maintain a tight approach on spending and maximise revenue flows in order to reduce government debt, the Minister for Finance revealed that revenue collection in 2004 is likely to be boosted by the extension of GST to all sectors, including direct imports, locally manufactured goods, petroleum products, and the tourism sector.

He also suggested that based on current trends, the trades tax is likely to be responsible for the collection of R9.198 million in additional revenue in 2004.

In conclusion, Mr Michel observed that:

"2003 has been an eventful year and the forthcoming year looks promising. We have now entered a new era of economic change for the betterment of our people."

"With the positive results achieved so far, the Government is confident that its new economic strategies underlined by the MERP will go a long way in helping to attain its overall objectives, which will provide for economic prosperity without eroding the socio-economic gains of the past years."