The first relates to GDP computation. In his own words “๐๐ง๐๐ฃ๐ค๐ฃ๐จ ๐ฅ๐๐ง ๐๐ญ๐๐ข๐ฅ๐ก๐ ๐ก’๐๐ญ๐ฅ๐ค๐ง๐ฉ๐๐ฉ๐๐ค๐ฃ ๐๐๐จ ๐๐๐๐ฃ๐จ ๐๐ฉ ๐จ๐๐ง๐ซ๐๐๐๐จ ๐๐ฉ ๐ก๐๐จ ๐ง๐๐ซ๐๐ฃ๐ช๐จ ๐๐ช ๐๐ก๐ค๐๐๐ก ๐ฝ๐ช๐จ๐๐ฃ๐๐จ๐จ. ๐๐ช๐๐ฉ๐ ร ๐ช๐ฃ๐ ๐๐๐จ ๐ง๐๐๐ค๐ข๐ข๐๐ฃ๐๐๐ฉ๐๐ค๐ฃ๐จ ๐๐ ๐ก๐ ๐๐๐, ๐๐๐ฅ๐ช๐๐จ 2021, ๐๐ฉ๐๐ฉ๐๐จ๐ฉ๐๐๐จ ๐๐๐ช๐ง๐๐ฉ๐๐ช๐จ ๐ ๐รฉ๐๐๐รฉ ๐’๐๐ฃ๐๐ก๐ช๐ง๐ ๐ก’๐ค๐ช๐ฉ๐ฅ๐ช๐ฉ ๐๐๐จ ๐๐ฝ๐พ ๐๐๐ฃ๐จ ๐ก๐๐จ ๐๐ญ๐ฅ๐ค๐ง๐ฉ๐๐ฉ๐๐ค๐ฃ๐จ ๐๐ ๐จ๐๐ง๐ซ๐๐๐๐จ. ๐พ๐๐ก๐ ๐ง๐๐ฅ๐งรฉ๐จ๐๐ฃ๐ฉ๐ ๐๐จ27.5 ๐ข๐ก๐ก๐๐จ ๐๐ฃ 2021, ๐๐จ33.9 ๐ข๐ก๐ก๐๐จ ๐๐ฃ 2022, ๐๐จ44.4 ๐ข๐ก๐ก๐๐จ ๐๐ฃ 2023, ๐๐ง ๐๐จ46.2 ๐ข๐ก๐ก๐๐จ ๐๐ฃ 2024. ๐๐ฉ ๐ฅ๐ค๐ช๐ง๐ฉ๐๐ฃ๐ฉ, ๐’๐ช๐ฃ ๐ฉ๐ง๐๐๐ฉ ๐๐ ๐ฅ๐ก๐ช๐ข๐, ๐ก๐๐จ ๐๐ช๐ฉ๐๐ช๐ง๐จ ๐๐ ๐๐ ๐ง๐๐ฅ๐ฅ๐ค๐ง๐ฉ ๐๐ฃ๐๐๐๐ฉ ๐รฉ๐๐๐๐๐ฃ๐ฉ ๐๐ ๐ข๐๐ฉ๐ฉ๐ง๐ ๐๐ ๐๐ค๐ฉ๐ ๐๐๐ฉ๐ฉ๐ ๐ง๐๐๐ค๐ข๐ข๐๐ฃ๐๐๐ฉ๐๐ค๐ฃ ๐๐ ๐ก๐ ๐๐๐ ๐๐ฉ ๐’๐๐ข๐ฅ๐ช๐ฉ๐๐ง ๐ก๐๐จ ๐๐๐๐๐๐ง๐๐จ ๐๐๐จ ๐๐ญ๐ฅ๐ค๐ง๐ฉ๐๐ฉ๐๐ค๐ฃ๐จ ๐๐ ๐จ๐๐ง๐ซ๐๐๐๐จ ๐๐ ๐ก๐ ๐ฅ๐ง๐ค๐๐ช๐๐ฉ๐๐ค๐ฃ ๐๐๐จ ๐๐ฝ๐พ".
The Minister is not telling the truth. In June 22, GDP data were revised upwards by Statistics Mauritius (SM) as from 2018 by around 3 to 4%. In this exercise, activities of GBCs and services purchased by GBCs from local enterprises, such as management, accounting, auditing, legal, advertising, real estate, banking, etc., were included in exports of services. In other words, services exports of GBCs, were partly included in total exports of services. GDP, which relates to domestic activities, was thus increased by an amount of offshore services exports.
The Bank of Mauritius, which is responsible for balance of payments compilation, did not agree to revise exports of services to include GBCs, and kept classifying all GBC export income as primary and secondary income. SM therefore made its own estimation of GBC exports of services to add to total services exports and GDP, by accordingly reducing GBC primary investment income.
GBC exports of services are justifiable to a degree, but were over-estimated by SM to reach around Rs85 bn in 2023 and 2024 as from only Rs36 bn in 2021. This data rigging was meant to inflate exports of services and GDP. Investments were also artificially boosted to raise GDP above Covid- depressed levels.
As explained in the State of the Economy (SOE) document, SM and BoM agreed at end 2024, under the new Govt, on revised figures for exports of GBC services, which reflect a downward adjustment as shown below.
Contrary to what the former minister of finance is stating, GBC exports of services are indeed included in total exports of services by BoM, and in GDP by SM, but much lower than was estimated under the previous Govt, especially as from 2021. The figures mentioned by the minister are only the excluded GBC exports, i.e., the downward adjustment. He ignores the included GBC exports.
As reported in the latest IMF Report on Mauritius, an IMF mission has been studying SM’s current GDP methodology, and will soon confirm the rationale and extent of the downward adjustment made to GBC exports of services.
The second alleged example of Govt data manipulation pertains to the CSG, which the SOE document shows to be unsustainable. Pada says that : “๐๐ง, ๐ฅ๐ค๐ช๐ง ๐ฅ๐ค๐ช๐ซ๐ค๐๐ง ๐๐ฃ๐ก๐๐ซ๐๐ง ๐ก๐๐จ ๐ฉ๐ง๐๐ฃ๐จ๐๐๐ง๐ฉ๐จ ๐จ๐ค๐๐๐๐ช๐ญ ๐ง๐๐ก๐รฉ๐จ ร ๐ก๐ ๐พ๐๐, ๐๐ก๐จ ๐ค๐ฃ๐ฉ ๐๐๐ค๐ช๐ฉรฉ ๐๐๐จ ๐รฉ๐ฅ๐๐ฃ๐จ๐๐จ ๐ฆ๐ช๐ ๐ฃ๐ ๐ฅ๐๐ช๐ซ๐๐ฃ๐ฉ รช๐ฉ๐ง๐ ๐๐ค๐ฃ๐จ๐๐รฉ๐งรฉ๐๐จ ๐ฅ๐๐ง ๐๐๐ฉ๐ฉ๐ ๐๐ค๐ฃ๐ฉ๐ง๐๐๐ช๐ฉ๐๐ค๐ฃ ๐ฅ๐ค๐ช๐ง ๐ฅ๐ค๐ช๐ซ๐ค๐๐ง ๐๐ฃ ๐๐๐ฃ๐ ๐ข๐๐ฃ๐ฉ๐๐ง ๐๐ฉ ๐๐๐ง๐ ๐ฆ๐ช๐ ๐ก๐ ๐พ๐๐ ๐ฃ’๐๐จ๐ฉ ๐ฅ๐๐จ ๐ซ๐๐๐๐ก๐. ๐ผ๐ซ๐๐ ๐๐๐ฉ๐ฉ๐ ๐ข๐๐ฃ๐๐ฅ๐ช๐ก๐๐ฉ๐๐ค๐ฃ, ๐๐ช ๐ก๐๐๐ช ๐’๐๐ซ๐ค๐๐ง ๐๐ช 1๐๐ง ๐๐ช๐๐ก๐ก๐๐ฉ ๐๐จ 11 ๐ข๐๐ก๐ก๐๐๐ง๐๐จ ๐จ๐ช๐ง ๐ก๐ ๐๐ค๐ข๐ฅ๐ฉ๐ ๐๐ ๐ก๐ ๐พ๐๐, ๐๐ก๐จ ๐๐๐จ๐๐๐๐ฃ๐ฉ ๐ฆ๐ช’๐๐ก ๐ฎ ๐๐ซ๐๐๐ฉ ๐ช๐ฃ ๐รฉ๐๐๐๐๐ฉ ๐๐ ๐๐จ 9 ๐ข๐๐ก๐ก๐๐๐ง๐๐จ”.
The ex-MOF makes a false comparison between a positive balance of Rs11 bn at the end of 24-25 to a deficit of Rs9 bn in 24-25. The alleged manipulation of Rs 11 bn relates to the inclusion in CSG payments of Govt CSG Contribution for public sector employees over five years since 2020/21.
Even if this item is not added to CSG expenses, CSG payments of Rs 19 bn exceed CSG receipts of Rs 13 bn by Rs6 bn in 24-25. Hence the SOE statement that the CSG has become unsustainable and is putting extreme pressure on public finances remains valid.
Govt used CSG receipts to finance CSG expenses as from 2022/23. In the first two years, namely 2020/21 and 2021/22, CSG receipts were used to finance other budgetary expenses. And now, CSG receipts cannot even finance CSG social benefits.
In conclusion, our Pada deserves an Oscar for his acting performance – from fiddler of GDP and budget revenue to making baseless claims of data manipulation by others.
What a conman !!! The minister is responsible for two Moody’s sovereign credit downgrades from Baa1 to Baa3, or to the brink of junk status. And he now warns about a possible further downgrade, while criticizing the very fiscal measures that can save us from falling into junk status.
He is a calamity this GUY, how can our Press tolerate him!
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Paul Lismore
Rattan Chand , pointless. The post and comments have words of two or more syllables et bann pov diab la pa pou konpran....
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Paul Lismore
The question that people need to ask themselves:
Why is ledefi Minus, which has the temerity to call itself an independent newspaper, giving so much space to politicians who were stuffed at the last elections?
We know that le defi was born from the entrails ofla kwizine, mais quand meme!
Do we still have an "Independent" Broadcasting Authority? Has Ramgoolam left the same idiots in charge of that moribund organisation that did absolutely nothing when la kwizine controlled the MBC, and most of our papers?
Every week, it is either Padaleksi, Joe Lesjongard, or some so called observateur politique who is nothing but an apologist for la kwizine.
When are we going to have the lovely Ayatollah Soodhun to tell us about world politics?
People still watch the 2 hour so called interview where at any moment one expect the "interviewer" to ask a really difficult and pertinent question like: ou prefer gato piman rond ou gato piman plate aven ene trou o milieu?
Really, the word "Independent" ought to be made a criminal offence when used in relation to anything that passes for our press and media...
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Rigg Needroo
Pada’s grandstanding in the media is a masterclass in deflection. It's a shocking display of audacity from a former minister who presided over two sovereign credit downgrades and now warns of another, all while criticizing the very fiscal measures designed to prevent it. His actions have demonstrated a consistent disregard for accurate data and a willingness to manipulate public perception for political gain. The press must hold him accountable for these baseless claims.
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