The colourable accounting of Payadachy exposed !!!

IMF has just released its World Economic Oulook (October 2020) . At Table B9 of its statistical appendix is the budget figures for Sub-Saharan Africa

Budget Deficit as a % of GDP 2019 2020

Sub-Saharan Africa -4.2 -7.6

Mauritius -10.3 -11.7

You recall that we had alerted you to the fact that the pretense of a “balanced budget” in 2020-21 is a travesty of fiscal reality, by treating the transfer of Rs60 bn from the Bank of Mauritius as budget revenue instead of budget financing. We had argued that this was a mockery of the facts and his fudging of the budget figures ran contrary to good practices on fiscal transparency and accountability.

The IMF figures confirm that Payadachy was trying to fool us with his so called “balanced budget''; IMF has not included the Rs60 bn from the Bank of Mauritius as budget revenue for fiscal year 2020-21 (and neither the estimated transfer of some Rs 11 billion from BOM for 2021).The Budget deficit for FY 2020/21 is thus some Rs 55 bn equivalent to -11.7 % of GDP .

23Prakash Neerohoo, Kugan and 21 others

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