The fiddling with figures goes on !

After the presentation of Budget 2021-22, the series of articles, including the IMF analysis in the Staff Report -critical of the budget figures - show that the the government is failing to persuade the public that the economy is or will be doing well. That explains why the government is so proactive in the manipulation of figures focussing on the management of perception after failing to convince us with its BBB-Big Budget Bluff.

The worst is yet to come !

Something back in March in an article title “The Budget Deficit : Caught in their own lies !!!” I argued that “ It may continue with its old trick of depreciating the rupee during budget time to reap the windfall credited to the Special Reserve Fund........”.

The general concern is that the worst is still not behind us— this massive depreciation of the rupee comes at a time when the increase in freights and international commodity prices, including international crude prices, which is currently above $70 a barrel, is likely to nudge on the local inflation.

Exit from the Grey List- one last hurdle, the On-Site Inspection by FATF

We will have to wait for the next plenary session of the Financial Action Task Force scheduled for October 2021 for a delisting of Mauritius from the grey list.

The progress made will be validated by an on-site inspection with the aim of confirming that “the necessary political commitment remains in place to sustain implementation in the future ”

Differences between IMF comments & views of Govt

The IMF’s recent comments on Mauritius highlights some key differences between their assessment of our economic situation, and the views held by Govt.

Big Budget Bluff (BBB) on Public Sector Investment

The 2021/22 Budget is claiming to set a new strategy with a key pillar, namely “Giving an Exceptional Boost to Investment”, as mentioned in para 28. The Budget, at Para 32, aims at “launching an unprecedented investment drive in the economy”, and refers, at para 132, to “the surge in public sector investment over the next three years”.

Vague answers to straight questions ?

Going through the interview of the ex-Governor of the BoM in l’express, I got the impression that we have been taken for a ride ; instead of straight answers to straight questions , we had to go through a verbose analysis which merely grazes the swirl of current events ...