Economic Outlook Economic Outlook

The Budget forecasts government revenue to be MUR121.7 billion for the fiscal year 2019/20, increasing by 10% from MUR110.7 billion collected in 2018/19. This is expected to be collected mainly from tax receipts and grants receivable. Tax receipts to government is expected to represent 78% of revenue; of which 69% of this will be from taxes on goods and services and the remaining 31% will be from taxes on income and profits. Revenue from grants will represent 5% of total government revenue.

Budgeted government expenditure is expected to increase to MUR138.6 billion for the fiscal year 2019/20, increasing by 9.5% from MUR126.5 billion expensed in 2018/19. Spending on social protection and general public services continue to remain the largest categories of expenditure provided in the Budget at just over MUR74 billion, representing a total of 53% of total projected spending. Other expenditures include spending on education, public order & safety, health and economic affairs.

The overall budget deficit is forecasted at MUR16.9 billion i.e. 3.2% similar to 2018/19. The budget indicates a higher dependency on grants, which will increase by MUR2.1 billion from last year. In addition, we are expecting the deficit to be financed by an increase of MUR4.9 billion from taxes. The deficit for 2019/20 is expected to grow by MUR1 billion. (*Note: Other income is comprised of: Taxes on property, other taxes, property income, social contributions and miscellaneous revenue)

As per the IMF Country Report No. 19/108 issued in April 2019, achieving statutory public debt target of 60% of GDP by the end 2020/21 would be missed, with the authorities considering extending the timeline to meet the debt target two years later 2022/23. However in the Budget 2019/20 it has been announced that public debt as a ratio of GDP, would reach 60% target earlier than June 2021, by using part of the accumulated surplus held at the Bank of Mauritius.