National Debt Soars to 89.3% of GDP, Piling Rs 525,957 Burden on Every Citizen

Mauritius’s public debt has surged to a staggering Rs 654.47 billion, now representing 89.3% of the Gross Domestic Product (GDP). This alarming level of national borrowing equates to an average burden of Rs 525,957 shouldered by every Mauritian, based on an estimated population of 1,243,741.

Quarterly Debt Jump

The sharp increase saw the public debt rise by Rs 19.74 billion in just three months, climbing from Rs 634.73 billion at the end of June 2025 to Rs 654.47 billion by the end of September 2025. This significant quarterly rise highlights the rapid growth in the nation’s financial obligations.

Government’s Debt Reduction Targets

Despite the current level, the government has set out targets to reduce the debt, aiming to bring it down to 75% of GDP within the next three years, with a long-term goal of 60%.

To achieve this, officials are planning to save Rs 5 billion over this period, primarily through reducing wastage and implementing improved efficiency in public finance management.

Change in Reporting Method

The calculation and reporting of the nation’s debt have also undergone a notable change. Since September 2025, the net public sector debt is no longer being compiled.

This is a direct consequence of the abrogation of Article 6(1A) of the Public Debt Management Act by the 2025 Finance Act.

Consequently, cash and cash equivalents as well as equity are no longer deducted from the public sector debt figures. This change means the focus is now solely on the gross debt figure.

Summary Key Debt Figures:

Current Debt Levels (End September 2025)

• Total Public Debt: Rs 654.47 billion
• Debt as % of GDP: 89.3%
• Debt Per Citizen: Approximately Rs 525,957 (based on a population of 1,243,741)

Recent Increase

• Quarterly Increase (June to September 2025): Rs 19.74 billion
• Previous Public Debt (End June 2025): Rs 634.73 billion

Future Targets and Savings

• Medium-Term Debt Target (within 3 years): 75% of GDP
• Long-Term Debt Target: 60% of GDP
• Planned Savings: Rs 5 billion (over three years, via reduced wastage and improved efficiency)

Reporting Change

• Change Effective Since: September 2025
• Impact: The net public sector debt is no longer compiled; cash, cash equivalents, and equity are no longer deducted from the public sector debt.

Source: Defi Media