The Mauritian government has announced two budgets aimed at economic recovery and development, with a focus on investment, modernization of traditional sectors, and development of new activities. The budgets for 2025-2026 and 2026-2027 aim to achieve growth through various measures, including the creation of a Rs 10 billion fund to stabilize essential product prices and reduce the burden on families. The government also plans to increase pension and social allocations to a minimum of Rs 21,500 during its term.
The budgets also outline several measures announced previously, including a reduction in fuel prices, reorganization of the Central Electricity Board (CEB) for lower electricity prices, and free internet for all households. Additionally, the government plans to provide free public transportation, including school vans, and modernize the bus industry to offer efficient, reliable, and safe services. The budgets also focus on reducing medicine prices and providing vouchers for purchasing unavailable medicines in public health centers.
The government's budget for 2026-2027 focuses on several key areas, including the development of artificial intelligence, exports, and the blue economy. The budget allocates funds for various sectors, including tourism, agriculture, and infrastructure development. The government aims to increase exports to USD 3 billion over five years and achieve a growth rate of 3.2% in 2025. The budget also provides for the training of 50,000 Mauritians in AI and other emerging technologies.
A comparison of the two budgets reveals several key differences and similarities. The 2025-2026 budget focused on laying the foundations for a new economic model, while the 2026-2027 budget emphasizes the implementation of structuring projects. The budgets also reveal a decline in the public deficit, from 9.8% in 2024-2025 to 3.7% in 2026-2027. The government's debt-to-GDP ratio is expected to decline from 90% to 85.5% over the same period.
The budget also outlines several measures aimed at promoting entrepreneurship and innovation. These include the creation of a national research and innovation institute, an innovative Mauritius scheme, and incentives for investment in artificial intelligence. The government has also announced a law dedicated to start-ups, an acceleration device, and a ten-year income tax exemption for these enterprises.
Expert Sanjay Goolab has expressed optimism about the budget, stating that it offers encouraging prospects for the country's economic development. However, he emphasizes the need for rapid, coherent, and rigorous implementation of the projects outlined in the budget. Goolab also stresses the importance of placing the right people in the right positions and providing them with the necessary resources and authority to act.
The budget has also been praised for its focus on transparency and accountability. The government has announced measures to ensure the independence and impartiality of the Mauritian Broadcasting Corporation (MBC) and the introduction of a Freedom of Information Act. The budget also provides for a reform of the electoral system, including the introduction of at least one-third of women on party lists for general elections.
Key points
- The Mauritian government has announced two budgets aimed at economic recovery and development, focusing on investment, modernization, and new activities.
- The budgets provide for several measures aimed at promoting entrepreneurship and innovation, including the creation of a national research and innovation institute and incentives for investment in artificial intelligence.
- Expert Sanjay Goolab has expressed optimism about the budget, emphasizing the need for rapid, coherent, and rigorous implementation of the projects outlined.
