Dear Friends, Dear BMBC Members
Budget 2025-2026: Insights from the MCCI and the EDB
The 2025-2026 national budget, presented on June 5 by the Prime Minister and Minister of Finance, marks a strategic turning point for the Mauritian economy. In a context of high public debt and economic slowdown, the government has opted for a balanced approach between fiscal discipline and economic stimulus. Two key institutions, the MCCI (Mauritius Chamber of Commerce and Industry) and the EDB (Economic Development Board), have published their respective analyses, offering valuable insights for economic stakeholders, particularly Belgian-Mauritian businesses.
MCCI: A Call for Structural Transformation
In its report titled "Budget Highlights 2025-2026 – A Prudent Rebalancing Act", the MCCI welcomes a clear intent for structural reform. The budget focuses on:
- Fiscal responsibility with compassion, aiming to reduce the budget deficit and public debt while supporting vulnerable groups.
- Innovation and research, with the creation of a National Research and Innovation Institute and the integration of AI and Big Data into public policy.
- Tax reform, including simplification of tax administration and clarification of transfer pricing rules, enhancing legal certainty for businesses.
- Global Business attractiveness, maintained through non-fiscal measures and alignment with international standards such as the OECD’s QDMTT
EDB: Talent Mobility and Investment at the Core
The Economic Development Board highlights measures that promote professional mobility and attract talent from the Mauritian diaspora. These initiatives aim to support the transition to a digital and high-value-added service economy. The EDB also emphasizes:
- The importance of private investment in strategic sectors.
- The role of the green and blue economy in economic diversification.
- • Improvements in the business climate, through institutional reforms and better governance.
A Budget Under Close Watch
This budget comes at a delicate time: public debt is nearing 90% of GDP, and rating agencies such as Moody’s are closely monitoring the country’s fiscal trajectory . The success of this plan will depend on its rigorous implementation and the government’s ability to maintain investor confidence.
Conclusion
For members of the Belgian-Mauritian Business Club, this budget presents both opportunities and challenges. The focus on innovation, competitive taxation, and openness to foreign talent could foster Belgian investment in Mauritius. However, it will be crucial to closely monitor the implementation of the announced reforms and their tangible impact on the ground.
You can consult the publications of the MCCI and the EDB via the links below.
MCCI - BUDGET HIGHLIGHTS 2025 - 2026
EDB BUDGET NEWSLETTER 2025 - 2026
Your comments and reactions are welcome directly on this blog!
Enjoy your reading and analysis.
Budget National 2025-2026