Embracing a Brighter Future together as a Nation

It is in these terms that the Prime Minister, Minister of Home Affairs, External Communications and National Development Unit, Minister of Finance and Economic Development, Mr Pravind Kumar Jugnauth presented the 2019-2020 National Budget, yesterday, to the National Assembly with a total expenditure amounting to the tune of Rs 138.6 billion.  

The budget, according to the Prime Minister, speaks the aspirations of youth, men and women and the well-being of Mauritian families with focus on the realities of our nation and challenges lurking ahead that will help Mauritius accomplished its ambitions in line with the motto “lame dan lame”.

The measures revolve and cut across ten main avenues which will in turn set the scene for attaining the development objectives: The ten avenues are:

·         strengthening the pillars of economic growth;

·         consolidating the productive sectors while shaping a more democratised economy;

·         expanding our economic space while deepening regional integration;

·         building the infrastructure that matches our development vision;

·         deepening our national reform agenda;

·         reaching a higher social development path with a focus on gender mainstreaming and improving quality of life;

·         promoting a safer and more secure living environment;

·         facing the challenge of climate change and further building the resilience of our environment; and

·         building stronger foundations for the infrastructural development of Rodrigues, Agalega and Outer Islands; and securing sound public finances and sustainable debt.

Economic Outlook

Real GDP annual average growth rate is forecasted at 3.9 percent in 2019 and 4.1 percent in 2020 as the country has reached another milestone in its production capacity with GDP passing the half trillion rupee mark this year. Unemployment rate is at its lowest level at 6.9 percent while average annual inflation rate for 2019 is projected at 1.5 percent as compared to 2.3 percent for the period 2015 to 2018.

Total investment as a ratio to GDP is estimated to rise to 20.5 percent in 2019 breaking the 100-billion-rupee mark for the first time. Foreign Direct Investment has attained Rs 70.5 billion for the last four years from 2015 to 2018 and a total of Rs 91 billion as Balance of Payment surplus has been generated in spite of running trade and current account deficits.

Furthermore, the country’s reserves also increased by Rs 117 billion to Rs 241 billion that is by 94 percent representing 11.2 months of import cover. 

Budget Estimates 2019-2020

Total expenditure will amount to Rs 138.6 billion of which Rs 121.6 billion for recurrent expenditure and Rs 17 billion for capital expenditure. 

Total revenue is estimated at Rs 121.7 billion, comprising tax receipts of Rs 104.7 billion, non-tax and other revenue of Rs 10.7 billion and grants of Rs 6.3 billion.

Public Sector Debt

Overall budget deficit for 2019-2020 is estimated at Rs 16.9 billion that is 3.2 percent of GDP. The borrowing requirement for 2019-2020 will be Rs 19.2 billion, most of which from domestic sources. The public sector debt is forecast to be brought down to 60 percent as a ratio of GDP by end June 2021 which the Government is targeting to reach much earlier.