Latest news with #NavinRamgoolam
TimesLIVE
17 hours ago
- Business
- TimesLIVE
Mauritius aims to halve budget deficit next fiscal year
Mauritius aims to halve its budget deficit to 4.9% of GDP in the fiscal year that starts in July, its prime minister said on Thursday, adding urgent changes were needed to improve the health of public finances. Prime Minister Navin Ramgoolam, elected in November, accused the previous government of falsifying the country's GDP, budget deficit and debt figures for years. He kept the finance ministry portfolio for himself to keep a close watch over the Indian Ocean archipelago's economy. 'Our commitment is to bring the budget deficit, the borrowing requirement and debt to sustainable levels within the next three years,' Ramgoolam said in a budget speech. Budget documents showed overall spending was expected to rise to 261-bn Mauritius rupees (R102.6bn) in the upcoming fiscal year, from a revised 252-bn (R98.1bn) rupees in 2024/25. Revenue was projected to increase to 224-bn rupees from 182-bn rupees. The government's borrowing requirement is seen falling to about 40-bn rupees in 2025-26 from 76-bn rupees in the current fiscal year. The former finance minister has not responded to the prime minister's allegation that key economic indicators were misstated. He and the ex-central bank governor have been charged with fraud over alleged embezzlement at a state-owned company. They have denied wrongdoing and are out on bail. Mauritius markets itself as a link between Africa and Asia and has shifted its focus from sugar, textiles and tourism towards financial services, business outsourcing and luxury real estate in recent years. Its economy grew 4.7% in 2024, and its statistics office forecasts growth of 3.3% this year.
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First Post
a day ago
- Business
- First Post
Why, and how, India plans to help cash-strapped Air Mauritius
Mauritius holds strategic importance for India due to its geographic position along key maritime routes in the Western Indian Ocean Region. Moreover, geopolitical interest in Mauritius has grown amid intensifying competition with China read more The Indian government has encouraged domestic airlines to consider investing in Air Mauritius, the financially troubled national carrier of Mauritius, which is grappling with negative equity of approximately $237 million (Rs 2,035 crore), according to officials familiar with the matter. The request from India's Ministry of External Affairs follows an appeal by Mauritius for strategic investments and additional flights by Indian carriers to its capital, Port Louis. Air Mauritius recently reduced flights to India substantially, cutting its twice-weekly Delhi service down to a single weekly flight and raising fares significantly in a bid to curb losses, Economic Times reported. STORY CONTINUES BELOW THIS AD Airport Holdings Limited (AHL), a company owned by the Mauritian government, holds a 99 per cent stake in Air Mauritius. As part of efforts to stabilize the airline financially, AHL recently converted around Rs 1,500 crore of debt into equity. Mauritius Prime Minister Navin Ramgoolam acknowledged earlier this year that Air Mauritius was technically insolvent, casting doubt on its viability. Indian airline executives expressed reservations about investing in Air Mauritius, citing limited passenger demand from the region and their ongoing internal expansion initiatives. Neither India's Ministry of Civil Aviation nor Air Mauritius responded to requests for comment on the potential investment. Strategic importance Mauritius holds strategic importance for India due to its geographic position along key maritime routes in the Western Indian Ocean Region. Prime Minister Narendra Modi, who was chief guest at Mauritius' National Day celebrations this year, emphasised the importance of Indian investment for Mauritius' economic development. India also recently built an airstrip and jetty on Mauritius' Agaléga island. Previously, Air India held around an 8 per cent stake in Air Mauritius until Air India's privatisation in 2022. Geopolitical interest in Mauritius has grown amid intensifying competition with China. Beijing maintains a military base in Djibouti and has increased engagement across the region, including Mauritius. Samir Bhattacharya, an associate fellow at the Observer Research Foundation, highlighted India's intention to maintain its influence against China in the region, emphasizing diplomatic and commercial connections. Although Mauritius is well positioned to attract transit passengers between Africa and Asia, rising competition from airlines like Emirates and Indian carriers Air India and IndiGo has complicated Air Mauritius' efforts to establish itself as a profitable transit hub.
Reuters
a day ago
- Business
- Reuters
Mauritius aims to halve budget deficit next fiscal year
PORT LOUIS, June 5 (Reuters) - Mauritius aims to halve its budget deficit to 4.9% of gross domestic product (GDP) in the fiscal year that starts in July, its prime minister said on Thursday, adding that urgent changes were needed to improve the health of public finances. Prime Minister Navin Ramgoolam, elected in November, accuses the previous government of falsifying the country's GDP, budget deficit and debt figures for years. He kept the finance ministry portfolio for himself to keep a close watch over the Indian Ocean archipelago's economy. "Our commitment is to bring the budget deficit, the borrowing requirement and debt to sustainable levels within the next three years," Ramgoolam said in a budget speech. Budget documents showed overall spending was expected to rise to 261 billion Mauritius rupees ($5.8 billion) in the upcoming fiscal year, from a revised 252 billion rupees in 2024/25. Revenue was projected to increase to 224 billion rupees from 182 billion rupees. The government's borrowing requirement is seen falling to about 40 billion rupees in 2025-26 from 76 billion rupees in the current fiscal year. The former finance minister has not responded to the prime minister's allegation that key economic indicators were misstated. Both he and the ex-central bank governor have been charged with fraud over alleged embezzlement at a state-owned company. They deny wrongdoing and are out on bail. Mauritius markets itself as a link between Africa and Asia and has shifted its focus from sugar, textiles and tourism towards financial services, business outsourcing and luxury real estate in recent years. Its economy grew 4.7% in 2024, and its statistics office forecasts growth of 3.3% this year. ($1 = 45.2200 Mauritius rupees)
Time of India
2 days ago
- Business
- Time of India
Local Airlines Nudged to Invest in Air Mauritius
The Centre has asked carriers to consider a strategic investment in Air Mauritius , the financially strapped national carrier of the African island nation, people aware of the development said. The nudge from the government comes as that airline battles a financial crisis , with a negative equity of $237 million (₹2,035 crore). A government official said the move came after the ministry of external affairs got a request from the Mauritian government for a potential strategic investment. It also asked for an increase in flights by Indian carriers to its capital, Port Louis, the person said. 'To cut losses, Air Mauritius has restructured its network, as part of which it significantly cut flights to India,' the official said. 'Indian carriers have been asked to launch more flights to cover the shortfall. The airline is also seeking to raise funding by selling equity, so Indian airlines are being requested to consider that, (but) only if it suits their business interest.' Airport Holdings (AHL), controlled by the Government of Mauritius, has a 99% stake in the airline. AHL recently converted ₹1,500 crore of debt into equity as part of the carrier's financial restructuring. Earlier this year, Mauritius Prime Minister Navin Ramgoolam said the carrier was technically insolvent, casting doubt over its future. The airline, which earlier operated two weekly flights between Port Louis and Delhi, had considered axing them but then decided to reduce it to one a week, while increasing fares significantly. Spokespersons of the ministry of civil aviation and Air Mauritius didn't respond to queries on the topic. Indian airline executives said they are unlikely to be interested in investing in a market that's not a significant source of passengers for them. Besides, they are in the midst of executing their own ambitious expansion plans. Prime Minister Narendra Modi was chief guest at Mauritius' National Day celebrations earlier this year. During his visit, Ramgoolam asked Indian investors to explore opportunities in the island nation, underlining that their participation is 'vital' for its economic growth. Last year, India built an airstrip and a jetty at Agaléga island in that country. Air India held about 8% of Air Mauritius before the former was privatised in 2022. Experts said Mauritius is of strategic interest to India due to its location on the maritime routes of the Western Indian Ocean Region (WIOR). Geopolitical competition over the region has intensified. China has a military base in Djibouti and extended its engagement with and presence in Mauritius and other island nations, according to Samir Bhattacharya, associate fellow at Observer Research Foundation. 'Given its diplomatic, cultural and commercial connections in the region, India considers the WIOR a part of its extended neighbourhood,' he wrote recently. 'Despite geographically being part of Africa, New Delhi categorises both Mauritius and the Seychelles under the Indian Ocean Region division, alongside more proximate states such as Sri Lanka and the Maldives. India is therefore keen to safeguard its influence against Beijing in this region.' While Mauritius is geographically well positioned to attract transit traffic between Africa and Asia, a fast-growing market, competition has surged. That's made it difficult for Air Mauritius to succeed at developing a new east-west hub while maintaining profitability. Since Air India absorbed Vistara last November, the airline has increased flights, managing to win a portion of the traffic from Air Mauritius while IndiGo continues to capture a significant share of that market. Additionally, Middle East carriers such as Emirates have a strong presence on the route.
Economic Times
2 days ago
- Business
- Economic Times
Centre nudges Indian carriers to invest in crisis-hit Air Mauritius amid strategic push in Indian Ocean
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Centre has asked carriers to consider a strategic investment in Air Mauritius , the financially strapped national carrier of the African island nation, people aware of the development said. The nudge from the government comes as that airline battles a financial crisis , with a negative equity of $237 million (Rs 2,035 crore).A government official said the move came after the ministry of external affairs got a request from the Mauritian government for a potential strategic investment. It also asked for an increase in flights by Indian carriers to its capital, Port Louis, the person said.'To cut losses, Air Mauritius has restructured its network, as part of which it significantly cut flights to India,' the official said. 'Indian carriers have been asked to launch more flights to cover the shortfall. The airline is also seeking to raise funding by selling equity, so Indian airlines are being requested to consider that, (but) only if it suits their business interest.'Airport Holdings (AHL), controlled by the Government of Mauritius, has a 99% stake in the airline. AHL recently converted Rs 1,500 crore of debt into equity as part of the carrier's financial restructuring. Earlier this year, Mauritius Prime Minister Navin Ramgoolam said the carrier was technically insolvent, casting doubt over its airline, which earlier operated two weekly flights between Port Louis and Delhi, had considered axing them but then decided to reduce it to one a week, while increasing fares significantly. Spokespersons of the ministry of civil aviation and Air Mauritius didn't respond to queries on the airline executives said they are unlikely to be interested in investing in a market that's not a significant source of passengers for them. Besides, they are in the midst of executing their own ambitious expansion Minister Narendra Modi was chief guest at Mauritius' National Day celebrations earlier this year. During his visit, Ramgoolam asked Indian investors to explore opportunities in the island nation, underlining that their participation is 'vital' for its economic growth. Last year, India built an airstrip and a jetty at Agaléga island in that country. Air India held about 8% of Air Mauritius before the former was privatised in said Mauritius is of strategic interest to India due to its location on the maritime routes of the Western Indian Ocean Region (WIOR). Geopolitical competition over the region has intensified. China has a military base in Djibouti and extended its engagement with and presence in Mauritius and other island nations, according to Samir Bhattacharya, associate fellow at Observer Research Foundation.'Given its diplomatic, cultural and commercial connections in the region, India considers the WIOR a part of its extended neighbourhood,' he wrote recently. 'Despite geographically being part of Africa, New Delhi categorises both Mauritius and the Seychelles under the Indian Ocean Region division, alongside more proximate states such as Sri Lanka and the is therefore keen to safeguard its influence against Beijing in this region.' While Mauritius is geographically well positioned to attract transit traffic between Africa and Asia, a fast-growing market, competition has surged. That's made it difficult for Air Mauritius to succeed at developing a new east-west hub while maintaining Air India absorbed Vistara last November, the airline has increased flights, managing to win a portion of the traffic from Air Mauritius while IndiGo continues to capture a significant share of that market. Additionally, Middle East carriers such as Emirates have a strong presence on the route.
