Business Leaders React to Budget 2025-2026 in Mauritius

The business community in Mauritius gathered the 5th June to review the new government’s Budget 2025-2026, which was officially presented earlier this week. Business Mauritius, the main organization representing the private sector, said the budget strikes a balance between social needs, economic growth, and investment in transformation.

Economic Environment and Openness to Reform
Amid a challenging macroeconomic environment, the budget’s approach was seen as a sign of openness to dialogue and reform.

Anil Currimjee, President of Business Mauritius, praised efforts to address the rising cost of living and emphasized the importance of targeted social assistance, especially pensions.

He said quickly implementing pension reforms could help ensure their sustainability and reduce the tax burden on young people and the middle class.

Fiscal Policy and Competitiveness
On the tax front, government announcements received a cautious response.

Business Mauritius acknowledged the commitment to better fiscal discipline but said it would need to analyze the new tax measures in detail and monitor how they are applied.

Currimjee also highlighted the government’s goal to improve competitiveness within three years, as stated by Prime Minister Pravind Jugnauth.

This timeline is seen as giving businesses clearer visibility to plan their investments.

Support for Innovation and Development
The private sector responded positively to proposals on innovation, research, development, and digitalization.

Kevin Ramkaloan, CEO of Business Mauritius, said the budget aligns with many recommendations from the private sector.

He pointed out that the government’s focus on export competitiveness, environmental sustainability, and productivity improvements is encouraging.

Pension Reform and Sector Concerns
Ramkaloan called the pension reform “an important and courageous step,” emphasizing its significance for fiscal discipline.

However, he also expressed concerns about potential impacts on specific sectors like real estate and finance, suggesting further analysis is needed to understand and address possible effects.

Collaboration and Monitoring
The meeting reinforced the private sector’s willingness to work with authorities to implement these reforms.

The constructive dialogue fostered a sense of partnership around the country’s economic priorities.

Moving forward, the focus will be on monitoring how these measures influence investment, employment, and overall growth.

Source: Defi Media