The contribution of Rs 60 billion of the Bank of Mauritius (BOM) to the Consolidated Fund was at the center of the Private Notice Question (PNQ) this Wednesday, June 16 by the Opposition leader Xavier Luc Duval who wanted to know how the government spent this money. He also wanted to know the impact of this contribution on the budget deficit and the public sector debt for the financial year 2020-2021.
Finance Minister Renganaden Padayachy first explained the reasons for this contribution. An exceptional measure that was even introduced in the BOM Act, by the government to deal with the difficulties related to Covid 19.
The Consolidated Fund, according to the minister, was to fund the Wage Assistance Scheme and the Self-Employed Assistance Scheme.
And throughout the PNQ, the minister maintained that this is a contribution from the Bank of Mauritius, so it is not a loan. As a result, it cannot be included in the public debt. And there is no repayment clause attached.
The bank of Mauritius has made this contribution to protect the banking system, said the Minister of Finance.
To which the opposition leader pointed out that Rs 28 billion of this contribution appears as a “Financial Advance” in an official government document. Hence for Xavier Luc Duval that means it would be a loan.
The Minister maintain his point that there is not a loan from the BOM to the Mauritian State and is an exceptional contribution.
