Madam Speaker, it is the Bank of Mauritius which has the primary duty to maintain price stability while promoting orderly and balanced economic development. It does this through its monetary policy and the management of the exchange rate. Prior to November 2024, there was a total disarray and inconsistency in the conduct of monetary policy by the Bank of Mauritius, which led to the continuous increase in the inflation rate, massive depreciation of the rupee and consequently, the continuous increases in the price of consumer goods. First, the increase in the key rate by a cumulative 265 basis points during 2022 was not enough to correct for the inflation expectations and prevent the depreciation of the rupee. Second, the Bank of Mauritius’ decision in September 2024 to lower the key rate by 50 basis points was done for political purposes, just prior to the general elections, and this further stoked inflationary pressures in the economy. Third, the excessive money-printing by the Bank of Mauritius to finance the budget deficit and the MIC aggravated the excess liquidity situation in the banking system and, again, caused prices to surge. Madam Speaker, the new Management of the Bank of Mauritius, which took office in November 2024, acted promptly to remedy the situation. Measures taken by the Bank of Mauritius include –

28 (i) raising the key rate by 50 basis points to 4.5 per cent per annum in February 2025; (ii) increasing the supply of forex in the domestic foreign exchange market to prevent rapid depreciation of the rupee, as was the case before; (iii) instructions to commercial banks to ensure that all dealings in foreign exchange, including swaps and other derivatives are effected through financial institutions duly licensed by the Bank; (iv) stricter regulation of intercompany transactions in foreign currencies, and lastly (v) instructions to banks to ensure that forward transactions are priced in a fair manner and in accordance with market fundamentals. Madam Speaker, Government complemented these measures by imposing that at least 85% of the proceeds from sales of villas under the Property Development Scheme should be converted into rupees. Furthermore, Government reduced the prices of gasoline and diesel by Rs5 per litre in December of last year. And the Government mitigated the impact of inflation and price rises by awarding a 14th Month Bonus covering more than 90% of workers, and the 2025 Salary Compensation. It should be highlighted that, since mid-November 2024, the rupee has actually appreciated by around 4.5 per cent compared to the US dollar and the inflation rate has since been maintained on a downward trajectory. In fact, the inflation rate, which was at a peak of 11.3 per cent in February 2023, is now at 2.5 per cent in March 2025. Madam Speaker, the Ministry of Finance will continue to coordinate with the Bank of Mauritius to ensure coherence in our approach to curb inflationary pressures in the economy. In this context, we are working on fiscal measures that will be announced in the forthcoming budget.

Thank you. Yes, hon. Second Member for Rivière des Anguilles…

(Interruptions)

29 I am sorry, you didn’t catch my eye in time! Yes!

Thank you, Madam Speaker. Madam Speaker, further to the Statement made by the hon. Prime Minister sometime back in Parliament on the State of the Economy, it is now of public knowledge that the previous government has been tampering with the calculation of economic indicators, including the rate of inflation, and that, to hide the true, the real economic situation in Mauritius. Will the hon. Prime Minister be in a position to enlighten the House as to the real, the true annual rate of inflation from the years 2019 to 2024?

Yes, I could, but it is long. I take it you want headline inflation rates? Well, if I go by month, actually it is 2.5%, but, as I said, at one point it reached 11.3 %. I can table the whole table if you want.

Yes!

One more question. Madam Speaker, the hon. Prime Minister of India has, in the course of his recent visit to Mauritius, announced that Mauritius and India will trade in Mauritian rupees. Will the hon. Prime Minister consider the advisability of seeking similar arrangements with other trade partners, precisely with a view to eliminate the risks and consequences of the depreciation of the rupee in Mauritius and, of course, to the benefit of the price level of our imports in Mauritius?

Unfortunately, I know of no other country that is prepared to do what India has done for us, Madam Speaker.

Thank you. That’s it, you are done? Hon. Jhummun, please! HORSERACING – BETTING TAX RATE EVOLUTION – REVENUE GENERATED