Port Louis - The Mauritius budget deficit for 2013 will climb to 3.7 percent of gross domestic product, much higher than the 2.2 percent the government had originally targetted for the year, the finance minister said on Friday.
Xavier Duval had previously said the deficit would come in above forecast due to a rise in public sector wages, but until now he had indicated it would be around 3 percent of GDP.
During his speech announcing the budget for 2014, he also said the economy next year was expected to expand by 3.8 to 4 percent, up from the 3.2 percent rise now expected in 2013.
At 16:48 SA time, the minister was still speaking.
The economy has been hit hard by the global economic slowdown and particularly by a drop in European tourists, who have been a mainstay of its vital tourist industry.
In a bid to broaden its economy, the Indian Ocean island nation has been diversifying away from reliance on tourism, sugar and textiles. It now has growing businesses in offshore banking, outsourcing, luxury real estate and medical tourism.
“2013 is turning out to be another year of responsible fiscal management despite unexpected external shocks. The budget deficit is estimated at 3.7 percent of GDP of which 97 percent is due to investment expenditure,” he said, despite the sharply higher deficit than he had forecast in his speech last year.
The public sector debt to GDP ratio would amount to 54.8 percent, he said, adding that this put it on track to reach a target of 50 percent by 2018.
He also said the State Insurance Company of Mauritius (SICOM), one of the island's leading pension managers, would be listed on the stock exchange with shares to be offered to small investors as a priority. - Reuters