Towards Fiscal and Budgetary Reforms

In April, Mauritius will host a mission from the International Monetary Fund (IMF) as part of the preparation of the Article IV report. This document will be essential in establishing the broad outlines of the 2025-2026 budget.

During this mission, IMF representatives will meet with government officials, economists, private sector stakeholders, and civil society. The objective is to assess the country’s economic situation and propose solutions to redress public finances.

The findings of this report will be closely monitored, as they will coincide with the preparation of the following year’s budget. Dhaneshwar Damry, Minister of Finance, indicated that the budget will emphasize productive investment, particularly by supporting the emergence of startups. The state will adopt a regulatory and facilitative role rather than intervening directly in the economy.

The first budget of the Alliance for Change government will be presented in June by Prime Minister Navin Ramgoolam. Meanwhile, preparations continue at the Ministry of Finance. Pre-budget proposals from economic actors and civil society will also be reviewed next month.

Despite these efforts, the government faces significant challenges. The rating agency Moody’s recently maintained Mauritius’s rating but requires fiscal reforms to be implemented by 2026. This includes an overhaul of the tax system and a reduction in public spending. In late 2024, a report revealed that the previous administration had manipulated economic indicators to mask a difficult situation. The IMF’s Article IV report could provide recommendations for the necessary reforms. The government may need to adjust its fiscal strategy based on these suggestions.