The public deficit in Mauritius has increased significantly, reaching Rs 76.1 billion for the financial year July 2024 to June 2025. This represents a substantial rise from the previous year's deficit of Rs 56.2 billion. According to Statistics Mauritius, the deficit now accounts for 10.6% of the country's Gross Domestic Product (GDP), up from 8.5% in the previous year.
The GDP is a measure of the value of goods and services produced within the country. The publication presents consolidated accounts of public administrations, combining their accounts and eliminating inter-administration transactions to prevent double counting. This provides a comprehensive picture of the country's public finances. The data shows that expenditures grew at a faster pace than revenues during the period.
The report highlights that expenditures increased by 20.5%, while revenues rose by 15.7%. Despite the growth in revenues, the deficit widened. A significant portion of the revenue increase came from taxes and duties, which contributed around 83% to the rise in revenues. Social benefits and personnel remuneration were among the main current expenditures.
The overall deficit also takes into account investment operations in non-financial assets, such as buildings and equipment. This means the deficit is not solely a reflection of the imbalance in current operations. The data provides insight into the country's fiscal position and the challenges it faces in managing its public finances.
According to the Ministry of Finance data published by Statistics Mauritius, the public debt reached Rs 570.5 billion at the end of June 2025. This represents a 16% increase from the previous year's figure of Rs 491.9 billion. The debt-to-GDP ratio also rose to 79.6% from 74% in the previous year.
It is essential to distinguish between the deficit and debt figures, as they represent different aspects of the country's finances. The deficit measures the imbalance in accounts over a specific period, while the debt represents the outstanding amount due at a given date. Interest on the debt amounted to Rs 19.1 billion, accounting for 7% of total expenditures.
This interest payment represents a significant portion of the country's expenditures, with approximately Rs 7 out of every Rs 100 spent on debt interest. This amount does not include the repayment of the principal amount borrowed. The data underscores the challenges Mauritius faces in managing its public finances and the need for prudent fiscal management.
Key points
- The public deficit in Mauritius widened to Rs 76.1 billion for the year ending June 2025.
- The country's public debt reached Rs 570.5 billion at the end of June 2025.
- The deficit and debt figures highlight the challenges Mauritius faces in managing its public finances.
