PRB Report Postponed: PM Highlights Economic Situation

PRB Report Postponed: PM Highlights Economic Situation

Fabrice Laretif

Sat 06/12/2025 - 14:00

Prime Minister Navin Ramgoolam's explanations for the delay of the PRB report, citing economic and administrative constraints, raise questions about whether unions, the opposition, and economists are convinced. The upcoming publication of the Pay Research Bureau (PRB) report is at the heart of political discourse, potentially illustrating a gap between government justifications and civil servant expectations. During a parliamentary session on December 2, opposition leader Joe Lesjongard questioned the Prime Minister about the report's progress, its publication date, and the financial provisions for its recommendations.

The Prime Minister reminded that the report's development began in March 2023, emphasizing that this timeline followed a work plan established prior to his government’s arrival. He explained that the PRB's task is complicated by the number of institutions involved, including ministries, departments, local authorities, the Rodrigues Regional Assembly, and approximately 125 parastatal bodies. The Bureau must gather a significant volume of data to enable constructive discussions with all stakeholders, requiring time and meticulous coordination, hence delaying the report's publication.

Furthermore, the Prime Minister highlighted the economic situation as a justification for the lack of a clear deadline. He referenced the "State of the Economy" report released in December 2024, which described a fragile economy. Ramgoolam criticized the previous administration for leaving a more severe deficit than anticipated and an unsustainable public debt. In this context, the government was compelled to present a budget imposing drastic measures to restore public finances, complicating the preparation of a salary report with financial commitments.

These arguments did not seem to convince the opposition. Joe Lesjongard retorted that the publication of the PRB report was part of the new government's electoral commitments, which had promised to release the document in December and make payments in January. To him, this delay adds to other unfulfilled promises.

From the union perspective, reactions echoed this sentiment. Negotiator Radhakrishna Sadien expressed palpable disappointment among civil servants. He recalled that the previous PRB report, expected in 2020, was only published in 2021 due to the pandemic, leaving public sector employees without recourse while awaiting the new report. "There are many expectations and much frustration," he stated.

Sadien also points to a divergence between the former and current administrations. The previous government had indicated that the next report would take effect from January 2026, while Navin Ramgoolam later announced a publication for late 2025. "It's been five years that the report has been awaited. How can one explain that it is still not ready?" he questioned.

The union leader noted that it was previously possible to complete a report within a year. Additionally, he raised concerns over current salaries. The last report indicated that a public sector cook earns around Rs 14,000. Sadien believes this wage level makes it challenging to attract new employees and that only the publication of the next report will correct these imbalances.

For the unionist, the issue transcends salary concerns. The PRB also assesses working conditions, which affect pension calculations for those nearing retirement. Thus, delaying the report directly impacts the financial outlook for thousands of workers.

Uncertain Situation

Economist Chandan Jankee believes the Prime Minister has maintained a consistent narrative since taking office, that of a weakened economy limiting maneuverability. Consequently, it would be difficult for him to commit firmly to a payment date related to the report.

However, the economist nuances this assessment. He argues that the economic situation cannot entirely justify the postponement of the PRB. He notes that the 2025-2026 budget, characterized by an "austere" orientation, has itself hindered economic momentum. Increased taxation on SMEs or the revision of the eligibility age for pensions would have created a negative multiplier effect. These measures have been reflected in a declining growth rate—from approximately 5% in 2024 to a forecast of around 3.2% this year—and a decrease in investment. "Investors see an uncertain situation and are waiting," he analyzes.

Chandan Jankee also rejects the notion that the government inherited a critically unstable economy. He recalls that the previous administration was able to finance two PRB reports, which he argues contradicts the claim of a catastrophic situation. He believes that the current economic strategy has fostered a form of anxiety, even distrust, which has worsened the situation instead of improving it.

Regarding the funding of the PRB, the economist fears that increased reliance on debt, higher taxes, or mobilizing profits from the State Trading Corporation, estimated at around Rs 3.5 billion, will be necessary.