Budget 2026-2027: A Roadmap for an Inclusive and Future-Ready Mauritius

The Prime Minister, Minister of Defence, Home Affairs and External Communications, Minister of Finance, and Minister for Rodrigues and Outer Islands, Dr Navinchandra Ramgoolam, today, presented the Government's second National Budget in the National Assembly, outlining a comprehensive strategy to consolidate economic recovery, strengthen resilience, and chart a sustainable path towards prosperity.

Building on the reforms initiated in the wake of the Government's assumption of office in November 2024, Budget 2026-2027 seeks to accelerate economic transformation while safeguarding social progress. Presented against a backdrop of global uncertainty, geopolitical tensions, climate change challenges, and demographic shifts, the Budget is guided by four core principles: responsibility, solidarity, economic efficiency, and social justice.

In his address, the Prime Minister highlighted encouraging economic indicators achieved over the past year. Unemployment declined from 6 per cent to 5.7 per cent, while inflation fell significantly to 3.7 per cent after averaging 7 per cent between 2022 and 2024. Gross official foreign currency reserves reached a record USD 10.3 billion, tourist arrivals surpassed 1.4 million, generating tourism earnings of Rs 103 billion, and key sectors such as ICT and financial services continued to expand. The economy grew by 3.2 per cent in 2025, with per capita GDP increasing by 3.3 per cent.

The Prime Minister also underscored progress made in governance and institutional reform, namely the restoration of democratic practices, the resumption of municipal elections, the advancement of constitutional reform, greater representation of women in leadership positions, and enhanced transparency. All these achievements have been instrumental towards Mauritius becoming the first African country to attain the Special Data Dissemination Standard Plus status.

Central to the Budget is the vision of creating a Future-Ready Economy based on seven strategic pillars. These pillars range from leveraging artificial intelligence and digitalisation, unleashing the potential of start-ups and SMEs, expanding and modernising economic space, re-engineering traditional sectors, developing the blue economy to addressing investment constraints, and fostering higher, more inclusive growth.

To improve the well-being of citizens, the Government is introducing four flagship initiatives: the Purchasing Power Shield Project, aimed at protecting households against rising costs; the 25by35 Food Security Initiative, designed to strengthen domestic food production; the Access to Water for All Programme, focused on improving water supply and infrastructure; and the Energy Secure Mauritius Project, geared towards enhancing energy resilience and sustainability.

While pursuing growth and social progress, the Budget also places strong emphasis on fiscal responsibility. Dr Ramgoolam emphasised that lasting prosperity cannot be built on excessive debt and reaffirmed the Government's commitment to fiscal consolidation through prudent management of public finances. According to him restoring fiscal balance is essential to preserving the State's capacity to invest in infrastructure, protect vulnerable groups, and support economic development.

Dr Ramgoolam indicated that for financial year 2026-2027, Government revenue is projected at Rs 235.5 billion and expenditure at Rs 266.7 billion, resulting in a budget deficit of 3.7% of GDP. Public sector debt is expected to decline to 85.5% of GDP by June 2027 and fall below 80% by June 2029. On that score, the Prime Minister underlined the importance of maintaining fiscal discipline to avoid a sovereign credit rating downgrade, which could increase borrowing costs, weaken the rupee, and raise the cost of living.

Salient Measures of Budget 2026-2027

Rs 2 billion allocated for the M4 Motorway project linking Forbach to the airport to improve connectivity and stimulate economic development. Rs 175 million earmarked to provide around 11,000 households with water tanks and fittings for a continuous water supply. Eligible households to receive a 25% grant (up to Rs 75,000) for the installation of rooftop solar photovoltaic systems under the Household Rooftop Solar PV Scheme. Recruitment of 2,220 medical and paramedical personnel, including nurses, to strengthen healthcare services. Launch of a Visiting Doctor Scheme with an allocation of Rs 40 million to bring international specialists to public hospitals. Basic Retirement Pension renamed State Age Pension, with eligibility based solely on age and not employment status. Emoluments and pensions of serving and former Presidents and Vice-Presidents to become fully taxable as from 1 July 2026. Carer’s Allowance increased from Rs 3,500 to Rs 4,250 per month. Maternity leave extended to 12 months: six months at full pay and an optional six months at half pay. Paternity leave extended from four weeks to six weeks.

For the Prime Minister, the Budget 2026-2027 is one of duty and responsibility rather than convenience. He reiterated that the Government remains committed to making difficult but necessary choices to secure a better future for present and future generations. This Budget seeks to balance economic ambition with financial discipline, laying the foundations for a more resilient, inclusive, innovative, and sustainable Mauritius, said Dr Ramgoolam.

19 June 2026

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