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Kugan Parapen: "We Are Not Heading Towards an Economic Crisis, But Difficult Times"

Kugan Parapen: "We Are Not Heading Towards an Economic Crisis, But Difficult Times"

In response to criticism and concerns expressed on the platform, Junior Minister Kugan Parapen aims to contextualize the situation within a broader perspective. He asserts that the current crisis is not due to internal failures but is a result of international upheaval that Mauritius must adapt to. "We are experiencing an external shock, a situation beyond our control," he emphasizes, noting that the surge in energy prices originates from global geopolitical dynamics.

In this context, he defends the government's choices, particularly the decision to temporarily cushion the rise in fuel prices. "For five to six weeks after the conflict began, the price of petrol in Mauritius did not change, while other countries adjusted immediately. We absorbed that increase, but it has exacerbated the deficit," he explains. He portrays this strategy as a necessary compromise to avoid a harsh shock for consumers, even if it means partially deferring the impact over time.

Regarding fiscal matters, Kugan Parapen acknowledges that adjustments will be unavoidable. He mentions the possibility of an increased contribution from higher earners: "According to statistics, 10% of the population earns more than Rs 100,000 per month. These individuals can make an extra effort." This avenue could, in his view, help offset a potential reduction in certain taxes on fuel.

However, beyond the measures, the Junior Minister calls for a change in tone in public debate. "We need to move away from a sensationalist approach to the debate," he asserts, warning against an alarmist interpretation of the situation. To conclude, he summarizes his position with a clear statement: "We are not heading towards an economic crisis, but rather difficult times that we must manage with clarity."

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