The Mauritian Ministry of Finance has introduced new directives for the execution of the 2026-2027 budget, aiming to tighten control over public expenditure. Ministries and departments are required to submit their Key Performance Indicators (KPI) for the 2025-2026 exercise by September 30. This move marks a change in approach, as public funds will no longer be spent without being tracked and justified. The new directives emphasize the need for effective management of public money.
The Performance-Based Budget 2026-2027 requires Supervising Officers to ensure that approved credits are used for their intended purpose and that each expense meets a specific objective. The goal is to prevent unauthorized, irregular, or wasteful expenditures. Ministries must establish internal mechanisms to monitor credit utilization, verify compliance with financial directives, and measure progress toward budget commitments. These measures are part of a broader effort to improve financial management.
The Ministry of Finance, led by Secretary Financial Anandsing Acharuz, is committed to ensuring that public funds are used efficiently. The new directives require ministries to go beyond simply spending allocated funds; they must also track their KPIs and regularly measure results against set objectives. Significant deviations between targets and performance must be explained, and corrective measures must be taken when results are not achieved.
The data submitted by September 30 will be used to prepare the government's financial statements, which will be audited by the National Audit Office. Another key deadline is October 31, 2026, when Annual Reports on Performance for the 2025-2026 exercise must be submitted to the National Assembly. These reports must include details on achievements, results, financial situation, and progress toward budget measures and KPIs.
The new budget execution directives also emphasize the importance of prioritizing financial commitments. Ministries must ensure that they do not take on financial obligations without approved budget provisions and confirmation of available funds. When additional needs arise, reallocation of resources within the same program should be considered, subject to applicable rules.
Large projects will be closely monitored, with a focus on both physical progress and financial execution. Any significant deviations from initial forecasts must be reported to the relevant authorities. Priority projects will be subject to monthly reporting to identify potential issues early on. This approach aims to prevent delays or cost overruns that could create additional financial burdens on the state.
The new directives also apply to public organizations, which will be monitored by their respective ministries to ensure compliance with government policies, legal obligations, and good financial governance practices. Ministries must oversee the financial exposure of the state, including guarantees, loans, and public participation. When public organizations face financial or operational difficulties, their respective ministries must work with their management and boards to identify necessary corrective measures.
Key points
- Ministries must submit KPIs by September 30.
- The new directives aim to prevent unauthorized, irregular, or wasteful expenditures.
- Large projects will be closely monitored to prevent delays or cost overruns.
