Editing Economy of Mauritius (section)

== Climate change and the economy ==
Mauritius faces significant environmental challenges such as [[Flash flood|flash floods]] and [[coastal erosion]], which have substantial economic implications. In June 2024, the government announced plans to introduce a 2% climate levy on company profits to finance projects that combat [[climate change]] and restore the natural ecosystem. Companies with sales of less than 50 million rupees ($1.06 million) will be exempt from this levy. The proceeds from this corporate responsibility levy will be used to support national initiatives to protect, manage, invest in, and restore the country's natural ecosystem and combat the effects of climate change. The nation of 1.26 million people is experiencing more climate change-related events and needs to mobilize 300 billion rupees to meet its adaptation and mitigation goals.<ref name="Bhuckory">{{Cite web |last=Bhuckory |first=Kamlesh |date=June 7, 2024 |title=Mauritius Seeks 2% Climate Levy as Pristine Beaches Wash Out |url=https://www.bloomberg.com/news/articles/2024-06-07/mauritius-plans-to-levy-company-profits-to-combat-climate-change |access-date=2024-06-09 |website=www.bloomberg.com}}</ref>

In 2024, [[Flash flood|flash floods]] brought the capital, [[Port Louis]], to a halt, causing significant disruptions in banking and market activities. [[Tourism]], a crucial source of foreign currency for Mauritius, is expected to generate over $2 billion in earnings from visitors this year. However, more than {{convert|37|km}} of the coastline have been affected by erosion, posing a threat to this vital industry. In response, the government has allocated 3.2 billion rupees to the new climate fund, which will be used to rehabilitate approximately {{convert|26|km}} of shoreline and 30 degraded sites. For the fiscal year ending in June 2025, Mauritius' government expenditure is projected to rise by 17% to 237.3 billion rupees, with revenue expected to grow by 20% to 210.5 billion rupees. This will narrow the [[fiscal gap]] to 3.4% of GDP from 3.9% in 2024. Borrowing requirements will increase to 38 billion rupees from 30.7 billion rupees, including 14 billion rupees in foreign financing. Despite higher borrowing, public debt as a percentage of GDP is projected to decrease to 71.5% from 74.5% in 2024, though in absolute terms, it will rise to 567.49 billion rupees from 524.6 billion rupees. Additionally, a government-support agreement is expected to unlock over 15 billion rupees in private-sector investment in renewable energy projects, demonstrating the government's commitment to sustainable development and economic resilience.<ref name="Bhuckory" />