Mauritius Plans Second Straight Year of Smaller Budget Deficit

Mauritius plans to narrow its budget deficit for a second year in a row through higher revenue collection and payments linked to the Chagos Islands lease. The government said the lease payments will help close its financing gap while officials work to boost domestic receipts.

No specific tax changes or spending cuts were detailed in the announcement. The plan continues a multi-year effort to strengthen public finances after earlier deficits widened.

Lease payments from the arrangement are expected to provide a predictable external inflow. Officials have not released updated deficit targets or a timetable for the measures.