Record Rs 91.4 Billion Social Spend Consumes 37.4% of the Mauritian Budget

Mauritius has reached a historic turning point in public spending, with social protection costs climbing to a record Rs 91.4 billion for the 2024/2025 financial year.

This unprecedented figure represents 37.4% of total government expenditure and 12.8% of the nation’s GDP, signaling a significant acceleration in the cost of the Mauritian social model.

The Pension Surge

The primary driver behind this budgetary expansion is the Basic Retirement Pension.

As of June 2025, 279,559 Mauritians were receiving the elderly pension—a 3.6% increase in beneficiaries.

However, the financial cost has surged by a disproportionate 38.1% in just one year, reaching Rs 57.8 billion.

The elderly pension now accounts for a staggering 63.2% of all social spending.

Analysts attribute this “silent shift” to an accelerating ageing population combined with higher monthly payouts, placing mounting pressure on the Treasury.

Broad Increases Across Benefits

The trend of rising costs extends to other categories of social support:

• Invalidity Pensions: Now covering 29,077 beneficiaries, with annual spending rising 30.3% to Rs 6.8 billion.
• Widows’ Pensions: Despite a slight decrease in the number of recipients to 16,707, expenditure rose 30.2% to Rs 3.6 billion.
• Contributory Pensions: The number of people receiving the Contributory Retirement Pension grew by 6.5% to 168,594.

Meanwhile, the National Savings Fund saw contributions from approximately 523,900 employees, generating Rs 3.8 billion in revenue.

Vulnerable Households and Employment Shifts

Traditional welfare remains a core pillar, with 11,595 families receiving Rs 645.4 million in Social Aid. Furthermore, 53,005 individuals remain covered by Food Aid or Income Support.

Notably, the Unemployment Hardship Relief has seen a dramatic collapse. Only 24 beneficiaries were recorded in June 2025, down from 119 the previous year.

A Question of Sustainability

While the figures reflect a robust commitment to national solidarity, they raise urgent questions regarding long-term fiscal stability.

With over a third of the state budget now dedicated to social protection, the challenge has shifted from a social issue to a strategic budgetary one.

Experts warn that as demographic weight begins to outpace economic cycles, the government must find a delicate balance between maintaining its generous social contract and ensuring the equilibrium of public finances.

Media Source: Le Mauricien