From Table 1, we can see that the Consolidated Budget deficit, inclusive of special funds, has been quite high for the past two years, a result of both cyclical issues and structural challenges. There are likely to be future concerns about revenue buoyancy. Both total revenue and tax as a % of GDP have been dipping while current expenditures are likely to increase further to more than 22% of GDP with the continuing high growth in government wage bill and the additional Rs 4.7 billion in old age pension. This may not be a problem in 2015 if it is met from the Special Funds but will be a big burden in future years. Expenditure on un targeted social benefits is already taking a huge chunk of our recurrent expenditure at 5% of GDP. Moreover, capital spending at less than Rs 10 billion, some 3.8% of GDP, is not keeping pace, especially in an environment of declining private investment, with the ambition to transform Mauritius into an international hub.
Table 1: Consolidated Budget Balance (inclusive of Special Funds)
Fiscal Aggregates as a % of GDP20102011201220132014 Revenue