Thursday, April 20, 2017

Breaking Down The Sithanen Toohrooh

At Rs297 billion Xavier-Luc Duval accounts for the biggest share of the almost trillion-rupee GDP gap which accumulated over the 11 years ending last December. That's a couple of billions shy of our 2010 GDP. Vishnu Lutchmeenaraidoo is in second place with Rs227 billion which was generated over around fifteen months. Pravind Jugnauth is in third position with a Rs195 billion gap which also accumulated over fifteen months but he is set to capture the pole position by end of June when another Rs125 billion will be added to his running total.

Rama Sithanen, the father of massively regressive policies, is in fourth with only Rs85 billion because although he was there for the longest period among the six finance ministers the disease hadn't gathered enough momentum as it would in later years. That's how compounding works, right? This point can be illustrated by the GDP deficit generated on Navin Ramgoolam's watch: Rs79 billion although he was Finance Minister (FM) for only seven months. This puts him in fifth position and SAJ is last with Rs44 billion.

If you want to know how much revenue is missing you just have to multiply these numbers by 15% to 20% depending on the growth rates you assume the economy has to generate when you mess around with the tax rates. Finally a rough estimate of Ali Mansoor's share -- he promised back in 2006 to implement Bretton Woods policies that work -- would be the sum of the first three numbers.

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