By Shruti Menon Seeboo
When Prime Minister Dr the Hon Navinchandra Ramgoolam, GCSK, FRCP rose to present Budget 2026–2027, he opened not with a figure but with a literary quote. Citing C.S. Lewis, he told the National Assembly: “You can’t go back and change the beginning; but you can start where you are and change the ending.” It was a deliberate choice of framing — one that captured both the candour and the ambition of what followed. The address was wide-ranging and detailed, touching on everything from artificial intelligence and aquaculture to pension reform and paternity leave, from drug trafficking to digital finance. But it was united by a single governing conviction: that Mauritius must be, as the PM put it repeatedly, “future ready.”
He opened with a stock-take of the economy that was, by any measure, encouraging. The unemployment rate had declined from 6% to 5.7%. Inflation, which had averaged 7% annually between 2022 and 2024 and peaked at 11.3%, had fallen to 3.7%. Gross official foreign currency reserves had reached USD 10.3 billion — “the highest level in decades,” the PM said, “both in absolute terms and in terms of import cover.” Tourist arrivals exceeded 1.4 million while tourism earnings reached Rs 103 billion, both at record levels. The ICT and financial services sectors had expanded by 4.5% and 5% respectively, and GDP had grown by 3.2% while per capita GDP rose by 3.3%.
Yet the PM was careful not to let these numbers obscure the challenges ahead. He was candid about the fiscal situation he inherited — a budget deficit of 9.3% of GDP and a debt-to-GDP ratio approaching 90% — and equally candid about the time it will take to reverse it. “Despite the progress we are making,” he said, “the rebuilding of our economy and society cannot be achieved in a single year or through one budget. It requires sustained effort.” He framed the budget not as austerity but as responsible reconstruction, anchored on four guiding principles: responsibility, solidarity, economic efficacy and social justice. The strategy he outlined was built on seven pillars.
Pillar One: Leveraging AI and Digitisation
The first and most forward-looking pillar concerns artificial intelligence and digitisation. Ramgoolam was direct about the stakes. “The AI revolution must not be something that happens to Mauritius,” he said. “It must be something that Mauritius prepares for, participates in, and benefits from.” The government is acting on three fronts.
On connectivity, following his direct engagement with Indian Prime Minister Shri Narendra Modi at a recent AI Summit in New Delhi, Mauritius will benefit from participation in Google’s America-India Connect initiative — a major international subsea connectivity programme that the PM said “can add a new layer of resilience to our existing submarine cable systems and strengthen strategic routes towards South Africa, India and Singapore.” The government is also positioning Mauritius as a trusted base for AI and cloud services, engaging with leading American and European companies to explore opportunities for AI infrastructure and AI-enabled services serving Mauritius, the Indian Ocean and the SADC region.
On people, following the successful MyT-GPT Education pilot project in ten schools, all 8,000 secondary school teachers in Mauritius will be trained and given access to a personalised AI teaching tool over the next year to support them in lesson preparation, classroom teaching, assessment, feedback and student support. In parallel, 12,000 Grade 9 students will be supported with AI-enabled learning tools. Beyond schools, 25,000 Mauritians will be trained in practical AI skills — including developers, entrepreneurs, SME owners, professionals and workers whose jobs are being transformed — and 5,000 public officers will be trained to use AI safely and responsibly. “In total,” the PM said, “50,000 Mauritians will be enabled or trained in practical AI use over the next year. Our goal is clear: new skills, better jobs, stronger public services, and a Mauritius that is ready for the AI economy.”
A Rs 25 million National AI Learning Platform will offer structured training, certification and an AI Innovation Start-Up Programme to support youth entrepreneurship. A Champion of AI Programme, developed in collaboration with the Indian Government, will build a network of AI leaders driving responsible AI adoption across organisations. On governance, Ramgoolam was emphatic: “As we promote AI, we must also retain firm oversight and control over its development and use.” A National Artificial Intelligence Guideline will be issued for governance and responsible use in higher education and the civil service, and Rs 13 million will go toward a Cyber Forensic Laboratory, a national cybersecurity survey, and the setting up of Information Security Management Systems across Government.
Pillar Two: Unleashing a Start-Up Revolution and SMEs’ Potential
The second pillar is about democratising the economy and empowering innovators to turn ideas into jobs and opportunities. The startup ecosystem being created comprises a dedicated Start-Up Act, a hub at the upcoming Special Economic Zone at Côte d’Or, a high-level public-private Start-Up Council, an Accelerator Scheme at the EDB, a digital patent management system, a dedicated start-up labour framework drawing on international best practices, and an income tax holiday of ten years for start-ups applicable from the day of operations. Government will also award an Innovation Scholarship of up to Rs 500,000 in seed funding to ten university students annually to turn their ideas into commercially viable projects through the National Research and Innovation Institute.
On SMEs, a new SME Bill will create a more conducive business environment. Custom duty exemptions on eligible utility vehicles will be extended to registered SMEs operating in transformative sectors, and a single digital platform will be developed by SME Mauritius to share information on all available schemes, grants, tax incentives and financing facilities.
Pillar Three: Expanding and Modernising our Economic Space
The third pillar addresses the diversification and expansion of Mauritius’s economic base. A new high-tech Special Economic Zone is being set up on 83 arpents of land at Côte d’Or, with infrastructure works already underway. The PM set an ambitious target of increasing exports of goods from USD 1.5 billion today to USD 3 billion within five years.
On port infrastructure, the Island Container Terminal project — worth USD 1 billion and implemented under a G-to-G arrangement with India — forms the centrepiece of a master plan to transform Mauritius into a premier port in the region. The Mauritius Ports Authority will provide a second licence to an international operator for container handling, bunkering and transhipment. A new project is also being considered over 41 arpents adjoining the Cruise Terminal — spanning residential, tourism, commerce, entertainment, leisure and a Digital Finance Centre — which, together with the Harbour Bridge, will be a major urban regeneration project.
Airport infrastructure is receiving Rs 2.7 billion for expansion and modernisation, alongside a digital Border Control System using biometric e-Gates to reduce passenger waiting times and strengthen border security against identity fraud, terrorism and organised crime. “A well-connected island,” Ramgoolam said, “is a must for the development of our nation.” The M4 Motorway project connecting Forbach to the airport will receive Rs 2 billion, opening up economic opportunities for villages in that corridor. Rs 150 million will go toward strengthening national waste management from a circular economy perspective, and a Circular Economy Bill will be introduced.
Pillar Four: Reengineering the Major Existing Sectors
The fourth pillar focuses on modernising Mauritius’s established economic engines, with particular attention to financial services, tourism and agriculture.
On banking and financial services, the PM set out a dual priority: consolidating Mauritius’s reputation as a trusted International Financial Centre and ensuring full readiness for the 2027 Mutual Evaluation by ESAAMLG. To strengthen the anti-financial crime framework, a National Crime Agency will be established to consolidate investigations into serious fraud, corruption, money laundering and complex transnational crimes. The Mauritius Police Force will deploy specialised investigative tools for virtual assets, financial crime and forensic accounting. The Computer Emergency Response Team of Mauritius (CERT-MU) will establish a national fraud reporting and response mechanism, and the Bank of Mauritius will roll out a Threat Intelligence Sharing Platform to facilitate real-time exchange of cybersecurity intelligence among banks.
At the same time, the PM announced, “we are laying the foundations for the next generation of financial services by introducing clear rules for the issuance of and investment in stablecoins, and the tokenisation of real-world assets.” An Open Banking Framework will enable the secure sharing of customer financial data between licensed banks, virtual asset service providers and authorised fintech providers. On legislation, Ramgoolam was direct. “Our banking legislations date back to 2004. Over the past two decades, the banking sector has changed beyond recognition. Our laws must keep pace.” A new Bank of Mauritius Bill, a new Banking Bill and an appropriate Resolution Regime will be introduced before the end of 2026, designed to “strengthen governance, sharpen prudential regulation and supervision, enhance consumer protection, and bolster financial stability, while fostering innovation in the delivery of financial services.”
On tourism, the PM acknowledged new pressures on a sector performing strongly. “There are powerful new global trends and exigencies facing the industry challenging our traditional model,” he said. The response is a deliberate shift toward diversification and sustainability. “Protecting our lagoons, beaches, biodiversity and natural resources must remain at the heart of our tourism strategy,” he said, “while supporting the development of new tourism experiences beyond the traditional coastal model.” Greater emphasis will be placed on nature-based tourism, cultural tourism, wellness tourism and community tourism. The government will support the development of eco-integrated tourism villages across different regions, showcasing cultural heritage, local cuisine, handicrafts, history, agriculture and natural attractions. The PM noted that “by repositioning Mauritius as a diverse, year-round destination offering much more than sea, sun and sand, the country will attract higher-value visitors, increase average visitor spending and reinforce its competitiveness on the global tourism stage.” Rs 1 billion has been allocated to support this transformation, including Rs 490 million to the MTPA. The École Hôtelière Sir Gaëtan Duval will be revamped to address shortages and skills gaps in the tourism industry, and a digital E-Visa system will be introduced to allow non-citizens to apply prior to travelling, reducing queues at the arrivals terminal.
For agriculture, the budget targets sugar production of 250,000 tonnes by 2030, with Rs 100 million per year over three years for the rehabilitation of 500 hectares of land owned by small and medium planters. A grant of 50% of replantation cost, up to Rs 25,000 per arpent, will be available to small tea growers, expected to increase tea production by 50% by 2029. A Forest Bill will be introduced alongside an agroforestry project. Rs 50 million has been earmarked for a modern veterinary hospital, Rs 75 million to subsidise the purchase of animal feed by breeders, and Rs 27 million under the Livestock Development Scheme for purchase of animals, equipment and veterinary services.
Pillar Five: Unleashing the Potential of the Blue Economy
The fifth pillar concerns what the PM described as the economy of the future. “There is no doubt,” he said, “that the economy that will be under the stewardship of our children and their children will be dominated by the blue economy. We must therefore set the stage today.” An International Centre for Ocean Studies (ICOS) will be set up at the University of Mauritius, a Mauritius Ocean Technology Incubator will be established at the National Research and Innovation Institute, and a comprehensive regulatory framework for hydrography will be formulated.
On fisheries, the EDB will issue international Expressions of Interest for the development of 28 fish farming zones — 20 in-lagoon and 8 off-lagoon, in addition to 6 barachois. Local fish production is expected to increase from 5,000 to 15,000 tonnes over the next three years. Rs 41 million has been allocated for the construction of 2 new high-capacity hatcheries at the Albion Fisheries Research Centre. A dedicated programme will accelerate the production of high-value aquaculture species and seaweed farming for domestic and export markets, with a 30% Freight Rebate Scheme of up to USD 200 per container on approved imported aquaculture feeds.
Pillar Six: Addressing Investment Constraints
The sixth pillar targets barriers to investment. A new Business Facilitation Bill will address bottlenecks and the principle of silent agreement will be introduced to put an end to lengthy waiting times for approvals. AI tools — including a multilingual chatbot — will be deployed on the National Electronic Licensing System to provide 24/7 support to investors, and a similar tool will be introduced at the Financial Services Commission.
On the labour market, a comprehensive migration policy will address labour shortages and skills mismatches. A National E-Diaspora Platform will be established by the EDB to harness diaspora expertise in support of national development priorities. Micro-credentials will be integrated into the National Qualifications Framework for rapid upskilling and reskilling. The HRDC will launch a Skills-Interface Platform to coordinate employers, training providers and Government. Trainee monthly stipends under the National Skills Development Programme will increase from Rs 8,000 to Rs 10,000, and under the Graduate Training for Employment Skills programme, the total support will be raised from Rs 100,000 to Rs 120,000 with a monthly cap raised from Rs 10,000 to Rs 12,000.
Four Priority National Flagship Projects
Alongside the seven pillars, Ramgoolam announced four flagship projects to address what he described as challenges “weighing heavily on the well-being of our people.”
The first is the Purchasing Power Shield. “Where the market fails,” he said, “Government should intervene and lead.” The State Trading Corporation will bulk-purchase essential consumer goods to lower living costs, selling them nationwide with capped profit margins. A further contribution of Rs 2 billion to the Rs 10 billion Price Stabilisation Fund was announced. Subsidies are being extended to corned mutton, corned beef, canned tuna, infant food, macaroni, black lentils, red lentils, red beans and luncheon meat, effective from 1 July 2026. A new law will crack down on abusive pricing and an e-commerce bill will be introduced.
The second flagship, the 25by35 Food Security Project, sets the goal of producing at least 25% of Mauritius’s food requirements with minimum dependence on imported inputs by 2035. “Food insecurity is an existential risk,” Ramgoolam said. “It is a serious threat to the well-being of people. We are, therefore, confronting it now.” The project will double land devoted to food production to 25,000 arpents by 2035 and promote contract farming. The STC will invest in a National Food Reserve Storage Facility.
The third flagship, Access to Water for All, allocates Rs 175 million to provide 11,000 households with facilities for continuous water supply, and Rs 6.4 billion over three years to expand national water catchment capacity. Construction of the Rivière des Anguilles dam is scheduled to begin later this year, alongside drilling of 20 more boreholes, pipe replacement and the construction of 15 more containerised pressure filtration units.
The fourth flagship, Building Energy Secure Mauritius, sets a goal of 60% renewable energy by 2035. The CEB has invited bids for 220 megawatts of Solar PV generation integrated with battery storage. The CEB will transfer ownership of solar PV kits installed on the rooftops of 1,000 beneficiary households, enabling them to benefit from 100% of the electricity generated compared to 50% currently. The feed-in tariff for households exporting to the grid will increase by 15%, from Rs 4.20 to Rs 4.83 per unit. Eligible households will also receive a grant of 25% of the cost of acquiring a rooftop solar PV system, up to a maximum of Rs 75,000 per application.
Healthcare: Candour, Reform and Rs 1.5 Billion in Investment
Healthcare received unusually candid treatment. “Government spends billions of rupees of taxpayers’ money every year on healthcare,” Ramgoolam said. “Yet, we witnessed a dramatic deterioration in the health services under the previous Government.” He noted that between 2019 and 2024, life expectancy in Mauritius stagnated while healthy life expectancy, according to WHO data, actually regressed. “These adverse trends must now be urgently addressed through decisive, prevention-focused and outcome-driven reforms.”
Among the measures: the recruitment of 2,220 medical and paramedical staff including nurses; a Visiting Doctor Scheme backed by Rs 40 million to enable international high-calibre consultants and specialists to work in the public system in scarcity fields, “avoiding the need to send patients abroad for treatment, unless absolutely necessary”; and training for 26 Medical Practitioners in Anaesthesia, Reanimation and Radiology, 30 in Emergency Medicine, 62 Medical Technologists, and 154 nurses in specialised fields including Midwifery, Oncology, Intensive Care and Diabetes. Hospital administration will now be managed by Hospital Managers to provide more effective service and cut wastage.
An investment of Rs 1.5 billion will modernise and expand healthcare infrastructure, including the construction of the new SSRN Hospital with research facilities at Pamplemousses, Africa’s first AYUSH Centre of Excellence — the PM noted it will be “the first one outside India” — a modern National Health Laboratory, a dedicated dialysis unit at ENT Hospital, and an interventional neuroradiology service for acute stroke and aneurysm. A Centre of Excellence in Cardiometabolic Care and Research will be established to position Mauritius as a regional hub for the treatment of obesity, diabetes and cardiovascular disease, with dedicated Women’s Health services for hormonal and metabolic conditions.
On disease prevention, the Sterile Insect Technique Facility at Sir Seewoosagur Ramgoolam National Hospital will scale up production of sterile mosquitoes from 100,000 to 400,000 weekly — “safer, more effective and sustainable than fogging.” The Public Health Act will be amended to introduce fixed penalties for illegal disposal and storage of wastes creating breeding grounds for rodents and mosquitoes. Rs 40 million will be invested to re-engineer Diabetes Prevention and Treatment, and a Comprehensive Health Literacy Programme will be implemented in schools.
A national Clinical Trials Network will be established across the public healthcare system. Through the PM’s personal initiative, the Hatter Institute of University College Hospital, London has already contributed Rs 29 million toward research on health challenges affecting Mauritius’s multi-ethnic population, with a further Rs 30 million to be invested in evidence-based healthcare research. A dedicated Healthcare Innovation and Artificial Intelligence Unit will be established to evaluate and safely implement new technologies.
Law and Order: Policing, Drugs and the Judiciary
The budget allocated Rs 14.2 billion to uphold law and order, with Rs 125 million to modernise the police vehicle fleet, Rs 531 million for equipment, and Rs 200 million for the National Crime Agency which, Ramgoolam said, “will revolutionise policing in Mauritius.” Community Policing will be restructured to forge stronger trust between police and citizens, and the police will intensify preventive patrols, expand Safe City surveillance and launch targeted operations against larceny, illegal road racing, illegal betting and public nuisance.
The fight against drugs was given extensive treatment, with the PM describing a three-pronged approach: prevention, dismantling trafficking networks, and healing. “The fight against drugs should not be limited to Police Force only,” he said. “We need concerted efforts.” Rs 80 million will go to the National Agency for Drug Control (NADC) for a nationwide awareness campaign, an Early Warning System connecting hospitals, laboratories and law enforcement in real time, and intelligence gathering to respond to emerging drug trends. Rs 50 million will be distributed across all Ministries for integrating the fight against drug trafficking into their policies and operations. The law will be amended to criminalise a broader range of synthetic drugs.
On dismantling trafficking networks, Rs 436 million will go to the Anti-Drug and Smuggling Unit (ADSU), which will use advanced analytics to track suspicious financial flows and deploy drones for improved surveillance. ADSU officers’ ad-hoc allowance will be raised from Rs 2,000 to Rs 5,000 per month. Rs 85 million will strengthen the capacity of the Forensic Science Laboratory, and the Mauritius Revenue Authority will invest Rs 72.5 million for a fast interceptor boat and vehicle scanning machine to enhance maritime drug detection. On rehabilitation, “We must see drug addicts as victims who need a helping hand to escape the drug trap.” The Ministry of Health will convert one wing of the old Flacq Hospital into a rehabilitation centre, and a 24/7 National Drug Hotline will be established under the NADC.
On the judiciary, Rs 15 million is provided for additional court officers and staff. The former Supreme Court building will be revamped to house the new Court of Appeal. A criminal court will be set up to expedite hearings where defendants have pleaded guilty, and an e-Judiciary platform will be established to strengthen the resilience of the justice system. On maritime security, a National Maritime Information Sharing Centre is being set up with India, Rs 2.3 billion will enhance maritime surveillance, and a Coastal Surveillance Radar System, an Offshore Patrol Vessel, four heavy-duty boats and four light utility helicopters will be acquired with the assistance of India, France and the USA.
Pension Reform: Confronting the Elephant in the Room
No element of the budget was more politically charged than pension reform. Ramgoolam described the Basic Retirement Pension as “a broken and bankrupt pension system no longer fit for purpose,” noting it had come to account for nearly 25% of government expenditure in 2024/2025 — “more than the budgets for education, health and social housing put together.” The dependency ratio had deteriorated from 16 workers per pensioner in 1962 to 4.7 in 2025 and is projected to fall to 2.5 by 2064. “To ignore the problem,” he said, “would have been a betrayal of the trust people have placed in us.”
The reform centres on renaming the BRP as the State Age Pension (SAP), taking effect from 1 January 2027. Employment status will not be a criterion for eligibility — “solely qualifying age” will determine entitlement. A universal means test will apply individually to eligible beneficiaries based on taxable income, with a threshold of Rs 14,000. Every eligible individual with income below that threshold will receive the full SAP. A tapering mechanism will phase out the benefit at Rs 50,000 per month. The minimum SAP will be Rs 1,000. The PM noted that 90% of households have a monthly income below Rs 100,000 and will therefore qualify, with over 75% receiving the full pension. All CSG pension allowances will be consolidated into the SAP.
Significant flexibility is also being introduced: eligibility to SAP from age 60 is restored to all citizens subject to income calibration and actuarial adjustments, and it will be possible to postpone drawing the benefit up to age 70 and benefit from an actuarially augmented SAP. A unified Independent Pensions Regulatory Authority will be established, and a Central Pensions Administration Bureau will regroup all state-sponsored schemes into one digital platform. From 1 July 2027, a new National Pension and Provident Fund (NPPF) will replace the existing NPF, paying a monthly pension and an optional lump sum. For public officials — the President, Vice President, Prime Minister and Deputy Prime Minister — entitlement to multiple non-contributory state pensions ends: pensions will be limited to a maximum of two-thirds of the highest salary. “Such public officials as stewards of the public trust will, therefore, lead by example,” the PM said.
Taxation: New Bands, Levies and a Fundamental Review
On taxation, the PM confirmed there will be no increase in the VAT rate for 2026–2027. “As a caring Government, and after careful consideration,” he said, “I am pleased to announce that we are NOT increasing the VAT rate.”
A new personal income tax band will be introduced: a rate of 20% on chargeable income exceeding Rs 1 million up to Rs 12 million, and 35% on income above Rs 12 million. This tax band will replace the fair share contribution for individuals. Excise duty on tobacco products and hard liquor will increase by 10% with effect from 20 June 2026, while the PM confirmed there will be no increase on wine and beer. The excise duty on the sugar content of sugar-sweetened products will increase from 12 to 15 cents per gramme of sugar from 20 June 2026, and from 1 October 2026 will be extended to sweets, fruit jellies, jams, crystallised fruits, biscuits, waffles, wafers and chewing gums. The excise duty of Rs 2 per PET bottle, currently limited to bottles containing beverages, will be extended from 1 October 2026 to all plastic bottles regardless of content. An Insurance Premium Tax of 5% on short-term general insurance will be introduced from 1 January 2027, applying to both new and renewed policies. An annual fee will be introduced for owners of motor vehicles who have opted for an old or personalised registration mark.
A High-Level Committee will be established under the Ministry of Finance to fundamentally review the entire tax system, supported by the IMF and other international experts, with a view to enhancing its fairness, efficiency and international competitiveness.
For 2026–2027, total revenue including Chagos receipts is expected to reach Rs 235.5 billion, with total expenditure of Rs 266.7 billion, translating into a budget deficit of 3.7% of GDP. Public sector debt is projected to fall to 85.5% of GDP by end June 2027 and below 80% of GDP by June 2029. “We cannot afford a downgrade,” Ramgoolam said plainly. “A fall into speculative, or ‘junk’ status would weaken our currency, raise the cost of imports, and place additional pressure on household budgets through higher prices. It would also lead to higher borrowing costs for households. This is why we must remain vigilant and stay the course on fiscal prudence.”
Social Measures: Family, Housing and Dignity
The budget introduced a series of social measures grounded in what the PM described as the need to “empower our citizens to play a still more proactive role in our inclusive society.” Maternity leave will be extended to 12 months: the first 6 months at full salary, and the remaining 6 months optional at half pay. Paternity leave will be extended from 4 to 6 weeks. Where a public holiday falls on a Sunday, the following Monday will be declared a public holiday.
On housing, Rs 2 billion has been allocated for off-site infrastructure under Phase one of the 8,000 social housing project, and Rs 25 million for critical drainage infrastructure at Highland and Riche Terre. State land will be made available for around 1,000 housing units for middle-income families in partnership with the private sector. The threshold for first-time buyer exemption from Registration Duty will be raised from Rs 2.5 million to Rs 3 million for bare land, and from Rs 5 million to Rs 6 million for apartments and houses. Owners of agricultural land, previously excluded from the scheme, will also now benefit. Government will no longer grant leases under the G+2 Scheme authorising the sale of apartments on state lands and Pas Géométriques to foreigners, and a special levy of 10% will be imposed on the sale of such apartments.
The poverty threshold for the Social Register of Mauritius will be raised from Rs 14,000 to Rs 16,400 from 1 July 2026, and to Rs 17,500 from 1 July 2027. Each regional hospital will have two geriatric wards dedicated to acute care for the elderly. Domiciliary medical visits, currently available to those aged 90 and above, will be extended to individuals aged 85 and above, with Rs 58 million provided. Elderly persons aged 80 and above will be eligible for once-a-month visits by a social worker. A Retirement Savings Bond will be introduced offering an annual interest rate of up to 6% for individuals saving for retirement. The monthly Carer’s allowance will increase from Rs 3,500 to Rs 4,250. The budget for Special Education Needs learners will be raised from Rs 562 million to Rs 619 million, and 15 more psychologists will be recruited for hospitals to support children with dyslexia and similar disabilities.
On gender equality, a minimum of 25% female representation on boards of parastatal bodies will be legislated. Women applying for loans will no longer need spousal consent. A She-Invests Programme will promote women in research and innovation, and Rs 5 million will be provided for a dedicated incubator for women under the SME scheme. Breaches of protection orders will become a criminal offence, a new Domestic Abuse Bill will be introduced, and a Gender-Based Violence Coordination Committee will be established for rapid multi-agency response.
On sport, Rs 1.2 billion is being allocated to the Ministry of Youth and Sports, including Rs 110.5 million for the preparation and participation of athletes in the Indian Ocean Islands Games 2027, the Youth Olympic Games, the Commonwealth Games and the African Games 2027. Two new swimming pools will be built, one each at Triolet and Flacq, and the Maryse Justin and Auguste Vollaire Stadiums will be upgraded.
On environment, Rs 4 billion is being earmarked under the Coastal Erosion Adaptation Programme, with more than 11.5 kilometres of severely eroded shoreline to be rehabilitated across 17 priority sites over the next five years. The Maurice Ile Durable project, which the PM described as “widely acclaimed internationally,” will be revived as part of the country’s green transition strategy. A Just Transition Commission will be established to lay the foundations for an ecological and just society.
Rodrigues, Outer Islands and Chagos
The budget allocates Rs 5.5 billion for recurrent expenditure and Rs 825 million for capital expenditure for the Rodrigues Regional Assembly, with overall Government expenditure for Rodrigues reaching Rs 11.2 billion. Support will be provided for the new runway at Plaine Corail and road access to accelerate the operation of the Technopark at Baladirou. A comprehensive Master Plan for Agalega, focused on housing, infrastructure, healthcare, education, renewable energy, food security, climate resilience and eco-tourism, will be finalised.
On the Chagos Archipelago, the PM reiterated that under the agreement signed with the UK in 2025, the United Kingdom recognises the sovereignty of Mauritius over the entirety of the Chagos Archipelago, including Diego Garcia. “Because of the delay of the UK Government to ratify the Agreement,” he said, “we are short of around Rs 10 billion in this Budget. However, I am confident that a final solution will be found soon.”
Budget 2026–2027 is, by the Prime Minister’s own framing, not a destination but a direction. It does not promise to resolve in one year what took a decade to unravel. In his conclusion, he cited the 19th-century French economist Frédéric Bastiat, before closing with a reminder of what underpins every measure in the speech: “In a world which is in total disarray, defined by the fog of uncertainty and unpredictability, Mauritius must stand prepared. Mauritius must be future ready.”
