[Parliament] PM: "It is essential to first revive the economy..."

In response to MP Raviraj Beechook during the PMQT in Parliament on Tuesday, March 24, Prime Minister Navin Ramgoolam stated that the "poor economic management" of the previous government has brought Mauritius' sovereign rating close to "junk status". Consequently, a high-level delegation was sent to London to present a plan for economic and fiscal consolidation to Moody's, which includes pension reform. The Prime Minister reminded that falling to "junk status" would have "immeasurable and profound" effects, particularly a decline in investor confidence, capital flight, and a depreciation of the rupee, thereby increasing inflation.

Now, the Macroeconomic Coordination Committee — comprising the Prime Minister's Office, the Ministry of Finance, the Bank of Mauritius, Statistics Mauritius, and the Economic Development Board of Mauritius — is closely monitoring risk scenarios through stress tests, the Prime Minister affirmed. He pointed out that Mauritius is the first country in Africa to have reached the IMF's SDDS Plus level. By adhering to this standard, "Mauritius meets the most rigorous standards for the dissemination of essential macroeconomic and budgetary data," emphasized Navin Ramgoolam. "We will continue to monitor and implement our fiscal consolidation program to gradually reduce the budget deficit and public debt to sustainable levels," said the Prime Minister. He added that it is essential to first revive the economy to position it solidly on a path of strong growth, while ensuring that the benefits are shared among the entire population.