Mauritius: Selected Issues

July 15, 2022

Preview Citation

Format: Chicago

Mauritius: Selected Issues, (USA: International Monetary Fund, 2022) accessed November 25, 2024

Summary

This Selected Issues paper reviews the fiscal rules framework in Mauritius with a focus on the calibration of the debt and budget balance ceilings. The paper concludes that a new medium-term debt anchor could be up to 80 percent of gross domestic product (GDP) compared to the anchor of 60 percent of GDP repealed during the pandemic. Introducing a short-term operational rule based on the overall fiscal deficit ceiling of around 3 percent of GDP would help reduce debt from 99.2 percent of GDP in FY2020/21 to close to the anchor by FY2026/27. The revised debt anchor would better reflect Mauritius’ debt carrying capacity while supporting growth. However, the current level of debt stands well above the proposed anchor. A transition period could be considered during which the deficit would gradually decline from 7.6 percent of GDP in FY2021/22 to 3 percent of GDP in FY2026/27 and beyond. Debt sustainability risks should continue to be assessed on the IMF’s Debt Sustainability Assessment tools regardless of whether the debt anchor has been met.

Subject: Asset and liability management, Environment, Financial services, International organization, Monetary policy, Public debt

Keywords: B. financing climate change, Central bank policy rate, Climate change, Climate change expenditure, Climate finance, Debt anchor, Debt limits, Debt rule, Financing gap, Global, Monetary policy transmission

Publication Details

Pages:

34
Volume:

---
DOI:

---
Issue:

---
Series:

Country Report No. 2022/224
Stock No:

1MUSEA2022002
ISBN:

9798400214844
ISSN:

1934-7685

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Staff Country Reports