Madam Speaker, with your permission, I will reply to Parliamentary Questions B/1, B/2 and B/21 together, as they all relate to the same subject matter.

Okay.

As the House is aware, on 22 May 2025, Mauritius and the United Kingdom signed an Agreement concerning the Chagos Archipelago. Under the Agreement, the United Kingdom recognises the sovereignty of Mauritius over the Chagos Archipelago, including Diego Garcia. The Agreement also stipulates that as sovereign, Mauritius has authorised the United Kingdom to exercise, with respect to Diego Garcia, the rights and authorities of Mauritius which are required for the long-term, secure and effective operation of the military base on that island. The Agreement has to be ratified for it to enter into force. The United Kingdom has not yet ratified. As you know, there have been some difficulties. Since the Bill entitled “Diego Garcia Military Base and British Indian Ocean Territory Bill” has not yet been adopted by the UK Parliament, the Agreement is therefore not yet ratified in full. On the assumption that the Chagos Treaty would be ratified, an amount of Rs10 billion was included in the revenue of the 2025-2026 Budget. However, due to the delay in the ratification of the Chagos Treaty, there will, of course, be a shortfall in revenue of Rs10 billion in this fiscal year. Other things being equal, the budget deficit will increase by the same amount, that is, 1.3% of GDP. This will in turn lead to an increase in public sector debt by the same percentage. Similarly, the delay in the ratification of the Treaty will result in the lower balance of payments inflows of a corresponding amount, putting additional pressure on the foreign exchange market. Madam Speaker, in order to mitigate the impact of this shortfall, the Ministry of Finance is already taking a number of actions namely – (a) enforcing stricter control over recurrent expenditure and reducing wastage; (b) reprioritising capital projects by implementing high-impact, growth-enhancing projects and deferring lower-priority ones; (c) exercising tighter financial control over public bodies to improve efficiency and contain budgetary transfers to them, and (d) optimising the existing cash balances across the public sector so as to limit new borrowings. It is our hope, Madam Speaker, that the Chagos Treaty will be ratified at the earliest possible opportunity so that the Agreement can enter into force and the provisions can be fully implemented.

Yes, hon. Etwareea!

Thank you, hon. Prime Minister. I would like to know whether the Government is talking about all these probable problems in the international organisations like the IMF, World Bank, of the outcomes of these difficulties?

I am sorry, I did not catch the last bit.

I am talking about these problems in the international organisations like the IMF and also to Moody’s.

Yes, yes, they are well aware of it. We are constantly in touch with them. I can tell you both the FS and Economic Adviser from the PMO are talking to them.

Hon. Seeburn wants a question? Your question was replied.

Yes, Madam Speaker. It has been replied.

Do you want a supplementary? You are all right? Okay, hon. Dr. Ms Daureeawo? No? Very good! Hon. Leader of the Opposition!

Thank you, Madam Speaker. Will the hon. Prime Minister now agree that including that Rs10 billion compensation for the Chagos deal in our national budget was presumptuous first of all and badly advised?

No, I do not agree. It was already agreed. We have signed the treaty. It was only going through the ratification process when President Trump did not agree with certain things. We have been talking to them. We have agreed, for example, that they wanted to have an additional member on the Commission. We have agreed. Then they wanted two members, we have agreed. Then, they wanted to be able to vote on that Commission; that also we have agreed. We are trying to make sure that the treaty is actually ratified.

Yes, Madam Speaker, I have a question.

Yes, on that issue? Alright, hon. A. Duval.

Thank you, Madam Speaker. There have been talks of possibility of going to lodge a case by Mauritius should the United States continue to veto, well, to block the signature. Can the hon. Prime Minister confirm whether this has been discussed at the level of the Mauritian government and what would be the implications?

Once while I was speaking to the press, I think somebody from the press asked me that question, and I did say we are looking at all the options and don’t think that we do not have options. What we have done apart from our lawyers at the State Law Office with the hon. Attorney General, we also have an international team of lawyers who are actually looking at all the aspects, all the options, and from then on, we will do what has to be done. I think it was in the press in England that we are going to sue – that is not true. CHAGOS ARCHIPELAGO TREATY – RATIFICATION DELAY – FINANCIAL CONSEQUENCES & IMPACT