🇲🇺MauritiusEast Africa
Kugan Parapen discusses government economic strategy and BRP reform, criticizes previous administration's financial management
via Le Mauricien2 min read
Junior Minister for Social Integration, Kugan Parapen, outlined the government's economic strategy, highlighting the severe state of public finances inherited from the previous administration. He noted that Mauritius faces an unprecedented debt level, reaching nearly 90% of GDP, and accused the former government and "MSM acolytes" of manipulating figures. Parapen stated that former Minister of Finance, Renganaden Padayachy, eventually acknowledged the findings of the State of the Economy report. The current government's approach combines rationalizing public spending with increasing tax revenues, including higher corporate and income taxes, and targeted levies on banks, telecommunications, and businesses. Parapen reported that public debt decreased from 88.5% of GDP in June 2025 to 87.8% in June 2026, calling it a significant step in the right direction. Regarding the Basic Retirement Pension BRP reform, he described it as "painful but necessary" and emphasized that beneficiaries should not suffer due to the previous government's mismanagement. Parapen strongly criticized the idea of excluding dividends from the BRP's Means Testing, calling it an "astonishing decision" and "completely unacceptable," arguing that those who proposed it are servants of big capital and do not belong in a socialist government.
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This summary was AI-generated from a story originally published by Le Mauricien.
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