The Communique from the Ministry of Finance on public debt tries to hide the facts. It states that “A sum of Rs billion was transferred by the Central Bank to the Consolidated Fund on 11 December 2019, as per Section 103 of the Constitution.”
This is matter of fact, who does not about that ? Why specify “as per Section 103 of the Constitution.”?
Is Govt trying to show that everything is being done legally while hiding the fact that the Bank of Mauritius Act is being amended to raid the Special Reserves Fund of the Banki and open the gates to fiscal irresponsibility?
They want to hide the fact that despite the uproar against this transfer ( one top economist had even commented that we are turning the BOM into a free ATM for Government’s cash needs), Government went ahead without a prior review of the economic capital framework of the Central Bank .
They want to hide the fact that they did not follow India’s example of setting up a panel to study the economic capital framework of the Central Bank and which recommended that the Central Bank should a) set a minimum economic capital reserves requirement and b) forbid distribution of unrealized valuation reserves to Government.
