Thursday, September 9, 2010

Mansoor Circular Misleading Nation


In it the Financial Secretary (FS) is saying that he was expecting our economy to ride on the coattails of a rebounding world economy. That of course made sense to him and to his university buddy as they had been attributing some of the worst growth rates in decades our country has clipped to unfavourable international factors only. Now that the world economy is growing faster than Mauritius Mr. Mansoor has had to come up with a new set of external culprits to justify a fresh round of unnecessary budgetary cuts. So as not to look too silly.

But the above equation reminds us that the FS is not telling the whole story. Indeed the amount of money our government collects depends not only on the size of the economy (GDP) -- and therefore indirectly on its growth dynamics -- but also on the average tax rate. Flattening our progressive taxation system to 15% besides creating a lot of social injustice crucially depended on the arrival of higher growth rates if we didn't want to end up with the worst of both worlds: more debt and getting nothing much accomplished.

We never got the required robust growth rates. We know we couldn't. We only contracted more debt and our problems in 2010 are worse than what they were 5 years earlier.

11 comments:

Anonymous said...

attention ramgoolam dire fausse nouvelle

Anonymous said...

Lets praise the Lord....'Le premier ministre, le Dr Navin ramgoolam, a .......'

I wonder if the guy undestands the depth of your arguments, I feel sorry for Mauritius.

Anonymous said...

Sanjay: You said in the past that Ramgoolam got rid of Rama because the latter messed up our economy. And I dont believe a word of it - I know Rama did a mess but he was fired simply because Ramgoolam needed to make space for you know who. The proof - Mansoor is still around cashing 500000 rupees each month.
Politque li simple ca camarade

Anonymous said...

A quand un debat Ramgoolam - Jagatsing sur MBC1?

akagugo said...

@ Anonymous of September 11, 2010 11:54 PM

"débat (...) sur la MBC1"????
Dans Dodoland enkor capav faire débat d'idées? Avec qui comme arbitre: Farah Caunye? Dan Callikan, Thierry Ramasawmy? :-)

Anonymous said...

A propos debat Jagatsing- Ramgoolam: bien sure qui capave faire debat. enan ban personne comment Y.Martial ki bien capave chair un debat de haut niveau, who said we need the speakers/speakerine of MBC(as they were called long time ago).

Moi mo finne email sakur de la BBC et li finne dire li pou invite Ramgoolam lor HardTalk bientot!

Anonymous said...

I still rememeber vividly seeing Rama on TV after he introduced the 15 percent thingy....and I said to myself 'did he get that idea from a textbook'.

The sad thing was that the PM didnt know or couldnt know a thing about this joke. or he didnt care - I hard him saying a rather stupid thing on radio about the nrpt - li dire moi inde p faire ca, mo dire li met li apres nous a va guetter. well what a team.

akagugo said...

Fauder ki Macarena-boy accepter vinn faire face... So ego capave pou fermal si li pense pou accepter croise le fer avec enn non-élu. Pas blier sa ti episode kott li ti alle Foresst Side pou enn défi ki so adversaire d'alors (Paulo ça mo crwar) ti déza refiser avant. Enfin, moi mo conner par experience ki "he who lives by the sword, dies by the sword", alorss...

Anonymous said...

Akagugo: yep, he will surely evade it(the debate) or send Aunty N instead.

Anonymous said...

Ali Mansoor cest un bon element, li un excellent analyst et li finne faire so preuve. navin ramgoolam faire li confiance, et quand nous premier ministre decide un chose li enan toujours raison. pas oublier ki le ptr c le parti de lavenir

akagugo said...

@ Anonymous of October 4, 2010 9:19 AM:
Tellement bon ki partou mo guetté, mo trouve ban-la flatte li ek so ti camouade ki pa'nn fouti convainc so leader fer gagne ticket pou poz candidat...