GM Business – Budget Run-Up: The economy is regaining its rights

Debt: + Rs 20 billion for the last six months

Business Mauritius and others at the Government Hall this Saturday for pre-budget consultations with Finance

Colacelli mission completes IMF Article IV Consultations

The beginning of May, less than six weeks before the presentation of the 2026/27 budget, sets the tone. The issue and concerns are economic. Thus, the latest statistics published officially by the Ministry of Finance indicate that the public debt problem remains worrying, with an increase of Rs 20 billion to reach Rs 675.4 billion, representing 89.5% of gross domestic product (GDP), before consolidation. At the same time, the pre-budget consultations are taking the next step this weekend with Business Mauritius and satellite organizations from the private sector, expected this Saturday at the Government House, more precisely at the Lunch Room of the National Assembly, as part of the pre-budget consultations. And to close the series at the beginning of May, the Mariana Colacelli mission will present to the press on Monday its first observations of the state of the economy within the framework of the Article IV Annual Consultations of the International Monetary Fund (IMF).

In the current situation, the evolution of public debt is attracting attention, especially since the main indicator, the ratio of debt to gross domestic product, is approaching the 90% mark. After a lull at the end of December with a symbolic drop of 89%, this parameter started to rise again, to 89.5% at the end of last March.

Over the last six months, the amount of public debt has increased by Rs 20 billion, from Rs 654.5 billion at the end of September last year to Rs 675.4 billion before the consolidation stage. The consolation, if there is one, is that after this last step, the ratio drops to 88%, with a mountain of debt of Rs 664 billion.

For its part, the foreign debt is getting dangerously close to the Rs 100 billion mark. At the end of March, it was Rs 98.8 billion, or Rs 2 billion more compared to the end of September, representing 13.1% of GDP. It cannot be ruled out that with the presentation of the next budget, the Rs 100 billion debt could be reached. For its part, the local debt has already crossed the Rs 500 billion mark, or Rs 511.2 billion against Rs 493.9 billion at the end of September last. Long-term instruments, namely Five-Year & Seven-Year Government of Mauritius Bonds and other Long-Term Bonds, amount to Rs 332.7 billion, and short-term borrowings represent some Rs 178 billion.

In addition to these data on the management of the economy, the government is preparing to take note of the point of view of the