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By Kamesh Mohadeb, Senior Manager, Advisory
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This year’s budget and forecast to 2024/25 predict an improvement across all major deficits.
According to the latest estimate of 2022/23, the Government is either close or likely to outperform its main economic targets.
The Government intend to improve on the target Budget deficit as a % of GDP from 3.9% to 2.9% for the next 3 years
2023/24 Budget Deficit: Rs21bn
Metro Express - Rs6.8bn;
Construction of new runway project project at Plaine Corail Airport - Rs7.7bn.
We note that the balance of the Special and other extra budgetary funds is to be reduced from MUR31bn to MUR12bn.
The MUR21bn deficit will be funded via a mix of domestic debts (issue of government securities) and foreign debts (support loans from International Bank for Reconstruction & Development and Agence Francaise de Developpement).
The Budget has been allocated to each ministry and department identified in the Budget as follows:
The Mauritian Rupee has depreciated vis-a-vis the USD and EUR at a compounded annual growth rate (CAGR) of 1.5% and 1.1% respectively each quarter since Q1 2019 to Q1 2023.
This has contributed to a quarterly CAGR of 2.8% for the same period on the value of imports.
The Government has set an ambitious target to reach a gross debt as a percentage of GDP of 71.5% for 2023/24.
Although the debt to GDP ratio is on the decreasing trend since 2020/21, the sustainability of the public debt level should remain a priority.
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Anthony Leung Shing, ACA, CTA
Country Senior Partner, PwC Mauritius
Tel: +230 404 5071