The public sector finances in Mauritius have deteriorated sharply over the 2024–2025 financial year. According to Statistics Mauritius, the general government deficit widened significantly from Rs 56.2 billion to Rs 76.1 billion. This represents 10.6% of the Gross Domestic Product (GDP), compared to 8.5% recorded during the previous financial year. The figures are presented on a consolidated basis, eliminating internal transactions to prevent double counting.
Total government expenditure surged by 20.5%, substantially outpacing a 15.7% rise in revenues. Despite the revenue increase, the growing mismatch resulted in a larger deficit. Taxes and duties drove nearly 83% of the revenue growth. Major current outlays included social benefits and personnel remuneration. The overall deficit reflects not only current operations but also investments in non-financial assets like buildings and equipment.
Public sector debt climbed to Rs 570.5 billion by the end of June 2025, up from Rs 491.9 billion the prior year. Data from the Ministry of Finance, relayed by Statistics Mauritius, shows that total debt expanded by 16%. This pushed the debt-to-GDP ratio to 79.6% from 74% previously. The debt indicator represents the total stock of outstanding liabilities owed at a given date.
Experts draw a clear distinction between the deficit and debt fiscal indicators. The deficit tracks the imbalance of accounts over a specific financial period, whereas debt represents the total stock of outstanding liabilities owed at a given date. Within these totals, debt interest payments alone reached Rs 19.1 billion, claiming 7% of total expenditures.
This means roughly Rs 7 out of every Rs 100 spent goes strictly toward interest, excluding the repayment of the principal borrowed. The growing public sector deficit and debt have significant implications for Mauritius' economy. The government will need to address the widening deficit and manage its debt effectively.
The Statistics Mauritius report highlights the challenges facing the country's public finances. The government will need to balance its expenditure and revenue to reduce the deficit. Effective management of public finances is crucial for maintaining economic stability and promoting growth.
The Mauritian government faces a pressing need to implement fiscal reforms to stabilize its public finances. By addressing the drivers of the widening deficit and managing its debt, the government can promote economic stability and sustainable growth.
Key points
- The public sector deficit in Mauritius widened to Rs 76.1 billion, representing 10.6% of GDP.
- Total government expenditure surged by 20.5%, outpacing a 15.7% rise in revenues.
- Public sector debt climbed to Rs 570.5 billion, with a debt-to-GDP ratio of 79.6%.
