An insight into the Mauritius Budget 2024-2025

The Finance Minister, the Honorable Renganaden Padayachy, presented the budget 2024-2025 to the National Assembly On June 7, 2024, under the theme “Demain nous appartient” or “Tomorrow is Ours.” This budget aims to prepare Mauritius for a promising future through key economic and social reforms amidst global economic uncertainties. Magellan, your advisor in expatriation matters, gives you an overview of the latest measures.

From: 2017 to 2023: Mauritius’ transformation

Below are the key points raised by the Minister of Finance in the Budget 2024-2025 speech:

Improved living standards

  • The average monthly household income in Mauritius rose by 51.1% from 2017 to 2023, reaching Rs 55,600.
  • The percentage of households earning less than Rs 25,000 per month dropped from 43% in 2017 to 19.6% in 2023.

Outstanding economic performance

  • The Mauritian economy exceeded expectations with a strong GDP growth rate of 7.0% in 2023, following an exceptional growth rate of 8.9% in 2022.
  • The GDP reached Rs 651.7 billion in 2023, which is well above initial estimates of Rs 628.4 billion.
  • Total investment increased by 30.9%, up from 7.8% in 2022, driven by a 20.3% rise in private investment and a 73.5% increase in public investment.
  • Foreign Direct Investment (FDI) inflows reached Rs 37 billion in 2023, surpassing the previous record of Rs 33.5 billion.

Positive economic indicators

  • Exports of goods and services rose by Rs 30.8 billion in 2023, reaching Rs 347 billion.
  • The unemployment rate in Mauritius dropped to 6.1% at the end of 2023, down from 6.8% at the end of 2022, the lowest level in over 25 years.
  • Overall, inflation went from 10.8% in 2022 to 7.0% in 2023.
  • The public debt-to-GDP ratio improved to 78% in 2023, a reduction of 7.2 percentage points.

Focus on inclusive and sustainable economic growth

The budget 2024-2025 emphasizes promoting inclusive and sustainable economic growth through various measures:

  • Investing heavily in infrastructure: building new roads, bridges, ports, airports, and developing the rail network.
  • Strengthening education and training: increasing the number of school and university places, enhancing educational and vocational training programs, and supporting lifelong learning.
  • Supporting small and medium-sized enterprises (SMEs): facilitating access to finance, establishing mentorship and support programs, and reducing administrative burdens.
  • Encouraging innovation and the use of technology: creating an investment fund for innovation, establishing a favorable regulatory framework for startups, and promoting research and development.

Social protection and inclusion at the core

The 2024-2025 budget places significant emphasis on social protection and inclusion. The government aims to:

  • Increase the minimum wage: a 10% rise in the minimum wage and the implementation of a universal minimum wage.
  • Expand access to social protection: extend social security coverage and establish an unemployment insurance system.
  • Improve health and education services: build new hospitals and clinics, recruit additional doctors and nurses, and reduce school fees.

Strong commitment to green economy transition

In response to climate change and its impact, the 2024-2025 budget demonstrates a strong commitment to transitioning to a green economy through the following measures:

  • Investing significantly in renewable energy: developing solar, wind and hydro energy, and introducing incentives for adopting renewable energy.
  • Promoting sustainable agriculture: supporting farmers in adopting sustainable practices and encouraging organic farming.
  • Protecting the environment: combating pollution and protecting biodiversity.

Stimulating the development of financial services

The development of financial services is another pillar of the 2024-2025 budget. The government intends to:

  • Strengthen the regulatory framework: implement regulations that are compliant with international standards and enhance measures against money laundering and terrorism financing.
  • Encourage financial innovation: create a regulatory sandbox for new financial technologies and support fintech development.
  • Attract foreign talent: establish a visa regime to streamline the process for foreign investors and entrepreneurs relocating to Mauritius.

An ambitious budget with considerable challenges

The ambitious 2024-2025 budget for Mauritius is intended to transform the country into a model of modern, prosperous, and inclusive development. With the proper implementation of these measures and if the targets are met, Mauritius will likely position itself as a leading economy in the region.

However, it is important to note that the implementation of this budget looks challenging. The government must be rigorous in public finance management and mobilize all actors in civil society to succeed in this ambitious endeavor.

In conclusion, the Mauritius budget 2024-2025 promises a better future for the country and its people, overcoming obstacles to truly embark on a path of sustainable and inclusive development. Contact Magellan to move to Mauritius and contribute actively to this promising destination!

Leave a Reply

Your email address will not be published. Required fields are marked *