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Home/Business/Mauritius Budget 2026/27: Green & Blue F…

Mauritius Budget 2026/27: Green & Blue Fiscal Policy Unveiled

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By ThePip Desk•
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A stack of papers with a pen on a wooden railing, overlooking the Port Louis harbor with boats and a city skyline.

Budget proposal draft on a wooden surface overlooking Port Louis harbor, Mauritius.

Key Highlights

Dharamraj Deenoo proposes a ‘Green & Blue Fiscal Architecture’ for Mauritius’s 2026/27 budget, focusing on economic renewal, social order, and fiscal consolidation through innovative finance.

Mauritius Unveils Green & Blue Fiscal Vision

Dharamraj Deenoo, a Civic Steward, has unveiled a ‘Green & Blue Fiscal Architecture’ for Mauritius’s 2026/27 budget. This ambitious plan aligns with the government’s strategy for Economic Renewal, A New Social Order, and Fiscal Consolidation.

Economic Renewal: Blue Finance Hub

The proposal positions Mauritius as a Blue Finance Hub, channeling capital into non-traditional sectors. Key initiatives include:

  • Blue Economy Blended Subsidies: Offering government guarantees or interest subsidies for Blue Bonds to fund marine biotechnology and sustainable aquaculture.
  • Carbon Offset Trading Exemption: Creating a tailored corporate tax regime for asset managers dealing in African carbon and plastic credits, aiming to make Port-Louis Africa’s premier green trading floor.
  • Green Technology R&D Deduction: A 100% tax deduction for research and development in green technologies like waste-to-wealth and wave energy.
  • Green Talent Tax Holidays: Three-year tax breaks for foreign and diaspora climate fintech experts to accelerate technological transition.

Social Equity & Fiscal Strength

For a new social order, the plan emphasizes social justice alongside economic transformation:

  • Carbon Taxation with Offset Allowances: Targeted carbon taxation for heavy industries (iron, steel, energy, cement), balanced with credits for green investments.
  • Emission Tracking System: To ensure transparency and accountability in climate commitments.
  • Inclusive Innovation: Ensuring SMEs and youth-led enterprises access export councils and blended finance for sustainability opportunities.

Fiscal consolidation strategies aim to reduce reliance on public borrowings and expand the fiscal base:

  • Blended Finance Instruments: Leveraging private capital with government guarantees through Blue Bonds and carbon trading exemptions.
  • VAT on Digital Services & E-Commerce: Extending VAT to secure new revenue streams without increasing rates on traditional sectors.
  • Port-Louis as Digital Trade Hub: Developing the city for African e-commerce, integrating customs, fintech payment gateways, and logistics.

Anticipated Outcomes

These measures are projected to consolidate fiscal stability through diversified revenue sources and reduced debt. Mauritius expects to integrate firmly into the Green & Blue Economy and the Digital Economy.

The impact includes revenue growth from new taxes, a surge in innovation-driven investment, and global branding as a Green Finance and Blue Economy leader. This also aims to enhance economic resilience by diversifying away from traditional sectors.

Dharamraj DeenooGovernmentMauritius