Between High Hopes and Harsh Realities, the 2025 Budget Is a Moment of Truth. The National Budget will be presented on Thursday, 5 June 2025.
Under the weight of towering expectations and rising uncertainty, the 2025 Budget marks a critical test for the self-proclaimed “Government of Change.” This Thursday, June 5, the administration will unveil its very first national budget, amid what it admits is a “difficult” economic climate. The tone has been firmly set in recent weeks: austerity and discipline will be the order of the day. Prime Minister Navin Ramgoolam, backed by Deputy Prime Minister Paul Bérenger, has made it clear: “We will have to ser sintir.”
An Unforgiving Economic Crossroads
Expectations are sky-high, but so too is public anxiety. Elected on a promise of change, the government now faces a crucial question: how will it navigate this pivotal moment? Caught between political ambition, fiscal constraints, and mounting social pressure, this budget is shaping up to be a full-scale stress test for the administration.
The stakes are high—and the room for maneuver limited. Globally, economic instability persists: inflation remains stubborn, commodity prices are climbing, and geopolitical uncertainty looms large. Domestically, Mauritius grapples with high public debt, recurring deficits, and the urgent need for structural reforms to reignite growth. Against this backdrop, the government’s central message is clear: public finances must be corrected, even if that requires austerity.
A Balancing Act Under Scrutiny
Economists and analysts are watching cautiously. Political observer Olivier Précieux sums up the government’s dilemma: reconciling economic necessity with political intent. “There are two paths forward,” he explains. “We might see a budget driven by fiscal rigor, dictated by economic necessity. But does the government have the political courage to follow through?”
True rigor, he notes, requires clear and often painful cuts to public spending—politically unpopular moves that risk provoking a social backlash. The administration, therefore, faces a delicate balancing act: enforcing budgetary discipline without betraying its development agenda or electoral promises.
Economist Manisha Dookhony calls for a realistic yet ambitious approach. “The 2025 Budget must be a compromise,” she says. “The government won’t be able to deliver everything at once. It will likely need to phase out its promises over several years, while keeping social priorities at the forefront.”
Rising Criticism and Growing Skepticism
But the tension between grim warnings and real action is already drawing criticism. Historian Jocelyn Chan Low sees the government’s alarmist tone as more political strategy than genuine crisis management. “A close reading of official statements suggests that many economic promises will be shelved,” he says, predicting a moderately restrictive budget—designed to dampen consumption while favoring business interests. This could leave social policy in the shadows.
Others argue for deeper, bolder reforms. Constitutional lawyer Parvez Dookhy emphasizes the need for genuine structural change. “We must fix what has plagued our society for decades,” he says.
Top of his list: water management. “The issues of distribution and storage need permanent, intelligent, and sustainable solutions. Announcing investments isn’t enough. We need to overhaul the institutions managing this critical resource.”
He also calls for stronger action against economic crimes. “This isn’t a funding problem; it’s about political will. Institutions must operate independently.” For Dookhy, restoring trust in public institutions is essential to stabilizing the rupee and building a healthier economy.
Tapping Into Untapped Potential
Beyond reforms, Dookhy highlights the need to create more national wealth. The expansion of Mauritius’s Exclusive Economic Zone (EEZ) offers a significant opportunity. “We must stop thinking small. Our maritime space can fuel tourism, fisheries, industry, and agri-food sectors.”
He stresses that tourism must remain a pillar of foreign exchange earnings but argues for broader industrialization and food self-sufficiency. “It’s absurd that we import fish while owning one of the world’s largest EEZs.”
He also calls for an aggressive shift toward renewable energy. “We have sun, waves, and wind—everything we need for sustainable energy. What’s lacking is political will.”
Yet austerity alone, he warns, will not suffice. Without strong leadership and comprehensive reform, budget cuts will only bring short-term relief.
The Tone Set Ahead of Budget Day
At a press conference on May 23 at Government House, Ramgoolam and Bérenger painted a stark picture. “Our public debt is unsustainable,” the Prime Minister declared. “Moody’s is watching. They’re waiting to see if we can cut the debt.”
He committed to reducing public debt by 5%—equivalent to Rs 37.5 billion. “That’s the scale of the challenge,” he said. He also pledged to end long-standing budgetary abuses.
Paul Bérenger, meanwhile, urged caution around expectations tied to the recent UK-Mauritius Chagos agreement. “The Rs 10 billion from that deal won’t fix our fiscal problems,” he said. “Let’s not kid ourselves—we’re still in rough waters.”
Citizens Demand More Than Words
As budget day nears, public expectations are high—and urgent. Mauritians want more than figures; they want transformation. They see this budget not just as a financial roadmap but as a foundation for a more autonomous, fairer, and resilient Mauritius.
The cost of living crisis weighs heavily on households. “Relieving families should be the minimum,” says Vashish Horril of Beau-Bassin. Laval Rofique adds: “Each month, we’re forced to make impossible choices.”
In this context, preserving the monthly Rs 2,500 social allowance for children is vital. “This support is a lifeline for many,” Rofique stresses.
But slogans, warns Horril, are no longer enough. “The country is in crisis, yes—but the time for empty promises is over. We need action, now.”
Jessica, another citizen, urges leaders to address long-standing structural issues. “Too many speeches avoid the real problems,” she says. She’s concerned about household debt, rising interest rates, and stagnant wages amid soaring inflation.
She also points to infrastructure gaps. “Raising pensions is good, but what about affordable, accessible care for seniors?” She criticizes the poor state of roads, which force drivers into costly, avoidable repairs.
“The government is losing credibility,” Jessica says. “Too many promises are made for votes, without the follow-through.”
A Crucial Test of Leadership
Mauritians understand sacrifices may be needed. But this first budget is make-or-break—it’s the government’s chance to prove it can turn lofty promises into tangible results. Failure to deliver could deepen public distrust.
Mahen Seeruttun: “Lakes pa vid”
Speaking from Sun Trust on Friday, former Financial Services Minister Mahen Seeruttun urged the government to maintain, even improve, social benefits. “Lakes pa vid,” he insisted. He also called for lower fuel prices and warned against ending subsidies on essentials like rice and flour.
Rajen Valayden: “The Script Is All Too Predictable”
Political analyst Rajen Valayden paints a bleak picture of three decades of misgovernance. He sees global instability compounding local fragilities and predicts the usual script: alarm over debt, calls for discipline, and talk of tech-led growth.
But for Valayden, the real crisis lies elsewhere: deepening inequality and a concentration of wealth that undermines democracy. He calls for a fair, inclusive economic model based on six pillars: State, Ecology, Education, Energy, Entrepreneurship, and Balance. The State, he argues, must take the lead in safeguarding the public good.
In his eyes, this budget must rise to the occasion—not just with rhetoric, but with bold, structural change aligned with the people’s aspirations for justice, equity, and progress.
*News source: https://defimedia.info/budget-2025-26-le-grand-test-du-changement