The central issue for Mauritius is not how much the Government spends, but whether budget measures shift the economy toward productivity, exports, investment and resilience.
we have outlined 5 key issues that we believe should be tackled in the upcoming budget.
Deficit Surge: The budget deficit widened significantly from Rs 38Bn in FY24 to Rs 70Bn in FY25, reaching 9.8% of GDP. Pre Budget 2026.pdf
Missed Fiscal Targets: Despite stringent measures aiming for an FY26 Recurrent Balance of Rs 12Bn, it already overshot to Rs 32.7Bn as
of April 2026.
Skewed Spending: Recurrent expenses dominate, with 60% to 68% of the budget (FY25-FY28) locked into Social Protection and
General Public Services.
Underfunded Growth: Productive sectors like Economic Affairs receive a meagre 5% to 6.6% of the budget, stifling long-term
infrastructure and industrial development.
Mounting Debt: Gross Public Debt climbed to 89.5% as of March 2026, with debt servicing absorbing 10% of total spending and
demanding urgent fiscal consolidation.