Madam Speaker, at the time we left office in December 2014, the public sector debt-to-GDP ratio – I am talking about December when we left office – stood at 58.8 per cent, that is, below the 60 per cent that is in force in many European countries. However, the previous Government's irresponsible fiscal stewardship resulted in a sharp increase in the debt ratio reaching 87.7 per cent by December 2024. In absolute terms, the public sector debt increased from Rs238 billion in December 2014 to Rs608.2 billion in December 2024, that is, an increase of Rs370 billion. To conceal their deliberate, I must say, irresponsible and reprehensible act, they suspended the statutory debt ceiling and set a new higher limit of 80 per cent of GDP instead of the 60 per cent that it was. Yet, the debt ratio, Madam Speaker, went beyond the roof, well above the 80 per cent limit, which they set themselves. It went beyond that, but they kept quiet. They did not do anything about this, as if Alice in Wonderland. Due to the precarious fiscal situation that we inherited, with a high stock of debt coupled with a huge deficit, we had to embark on a fiscal consolidation programme. In the 2025-2026 Budget Estimates, it was projected that the public sector debt would amount to Rs679.7 billion as at the end of June 2026, which would represent about 88.3 per cent of GDP. Public sector debt is estimated at Rs675.4 billion as at the end of March 2026, compared to Rs661.1 billion at the end of December 2025. This represents, Madam Speaker, an increase of Rs14.3 billion over this period, that is, up to March 2026. The increase in the debt level is explained mainly by – • higher central government debt of Rs11.1 billion, resulting from the expenditure of Rs56 billion exceeding the revenue of Rs46 billion during the quarterly period January to March 2026. The main contributors being the payment of salary compensation and basic pensions, and • higher debt of public enterprises of some Rs3.2 billion, mainly due to higher overdraft facilities of Rs1.5 billion and Rs1.1 billion mobilised by the CEB and the STC to cope with the rising working capital and foreign exchange requirements driven by the rise in international oil prices due to the conflict, as I said, in the Middle East. Madam Speaker, the level of public debt is expected to exceed the estimated figure for the Financial Year 2025-2026 due to the following reasons – i. There would be a shortfall in revenue of around Rs10 billion due to the delay in the ratification of the Chagos Treaty; ii. With the conflict in the Middle East, real GDP growth is now expected to be lower than projected. This will obviously have a negative impact on Government revenues; iii. Government revenues will be lower in view of the expected slower growth in consumption, which is in line with the Government's strategy to move away from a consumption-driven economy and a high import content to an investment-led growth model. In addition, the relatively weak dollar during the first semester of the fiscal year has negatively affected VAT receipts, and iv. Adjustments in the implementation of some budget measures in order to protect the most vulnerable, and support growth and investment. Madam Speaker, as I previously stated in reply to a Parliamentary Question, the Ministry of Finance has implemented a series of measures to contain expenditure in order to mitigate the impact of lower revenue on public finances. With regard to the creditors, additional borrowing requirements will be met primarily through issuance of Government Securities. Madam Speaker, Government is firmly committed to reducing the budget deficit and placing the public sector debt on a more sustainable path through strong fiscal reforms and enhanced governance. In this regard, as announced in the Government Programme and the 2025-2026 Budget Speech, a Fiscal Responsibility Act will be introduced to establish a stronger rules-based fiscal framework, promote greater transparency and accountability in public finances, and reinforce sound public financial management practices, and prevent the disaster that we had when the previous government was here.

Yes? Do you have a supplementary? Yes!

Oui. Merci pour la réponse, M. le Premier ministre. I would like to know whether the debt issue is a subject of discussion with the IMF. What is the message given by the IMF to the Mauritian Government?

I met with the IMF. They have just published the Article IV Report. They are very satisfied with the measures that we took to try to prevent debt from increasing.

Okay. Yes, hon. A. Duval!

Yes, thank you, Madam Speaker. I have a question. May I ask the hon. Prime Minister whether he agrees that he has been able to manage the deficit so far firstly, with considerable taxation which has been imposed, greater revenue through taxation and secondly, spending has been reduced because hardly any budgetary measures have been implemented to date, and therefore, does he consider that this is a sound fiscal policy given that it is being done at the cost of economic growth, which the Prime Minister said, himself, is projected to be at a record low of 2.8%, a record low for Mauritius next year?

Yes, Prime Minister!

It is because we have these economic constraints, Madam Speaker. But I did say it is a balance. Again, on one side, the debt; but also, the growth. We must not take measures that actually stifle growth completely.

Yes, Third Member for Rivière des Anguilles! ELECTORAL COLLEGE – PROPOSED SETTING UP