The financial situation of the Mauritian government has deteriorated, according to the latest Public Finance Statistics report published by Statistics Mauritius. The report covers the period from July 2024 to June 2025. Despite a significant increase in tax revenues driven by consumption, public expenditures have also risen. The General Government Gross Debt has increased by 16% in twelve months, from Rs 491.9 billion at the end of the 2023/2024 financial year to Rs 570.5 billion as of June 30, 2025.
The debt-to-GDP ratio has reached a new high of 79.6%, up from 74%. To finance its operations, the government issued Rs 62.6 billion worth of securities on the domestic market and contracted Rs 10.1 billion in external loans. The fiscal deficit has widened, with a net borrowing requirement of Rs 76.1 billion for the 2024/2025 financial year, up from Rs 56.2 billion in the previous year. This represents 10.6% of GDP, compared to 8.5% the previous year.
The primary deficit, which excludes interest payments, stands at Rs 57 billion or 7.9% of GDP. The main cause of this deterioration is the increase in current expenditures, which rose by 20.5% to Rs 273.2 billion, or 38.1% of GDP. Social benefits constitute the largest budget item, accounting for Rs 99.8 billion, driven primarily by pension payments of Rs 55.9 billion.
The government's wage bill has increased to Rs 65.7 billion, while debt interest payments now require Rs 19.1 billion. This means that for every Rs 100 spent by the government, Rs 7 go towards paying interest on accumulated debt. The government allocated 61.8% of its budget, or Rs 169.0 billion, to the social sector, and 38.2%, or Rs 104.2 billion, to general public services and economic affairs.
Despite a 15.7% increase in public revenues to Rs 197.2 billion, or 27.5% of GDP, this growth was overshadowed by the surge in recurrent expenditures. The value-added tax (VAT) remains the government's main revenue source, generating Rs 60 billion, followed by income and profit taxes at Rs 48.3 billion, and excise duties at Rs 24.7 billion.
Social contributions and property income brought in Rs 14.4 billion and Rs 7 billion, respectively. However, the increase in revenues was more than offset by the 22.1% rise in recurrent expenditures, resulting in a gross operating balance deficit of Rs 64.9 billion. Meanwhile, public investment in physical infrastructure has stagnated, with gross investments in non-financial assets declining to Rs 11.1 billion, or 1.5% of GDP.
After deducting consumption of fixed capital, net investment in fixed assets remains at Rs 0.8 billion. As a result, the net worth of the general government has deteriorated by Rs 80 billion over the financial year, due to the combined effect of the net operating deficit and significant actuarial losses on retirement commitments.
Key points
- Mauritius' General Government Gross Debt has increased by 16% to Rs 570.5 billion as of June 2025.
- The fiscal deficit has widened to Rs 76.1 billion, representing 10.6% of GDP.
- The debt-to-GDP ratio has reached a new high of 79.6%.
