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Mauritius

Author(s):
International Monetary Fund
Published Date:
July 2002
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Social and Demographic Indicators

Mauritius: Social and Demographic Indicators1/
PopulationEducation
Population (thousands; 1999)1,174Adult illiteracy rate (percent; 1995)17
Annual rate of growth (percent; average 1990-99)1.2Female21
Population under age 15 (percent; 1999)26Male13
Density (per square km.; 1999)579Gross primary school enrollment (percent; 1999)2/105
Land area (square km.)2,040Gross secondary school enrollment (percent; 1999)2/58
Population characteristicsIncome
Life expectancy at birth (years; 1999)GDP per capita (U.S. dollars; 1999/2000)3/3,640
Male67Poverty
Female75Head count index (percent of population; 1989-94)5
Infant mortality (per thousand; 1999)19
Crude birth rate (per thousand; 1999)17
Crude death rate (per thousand; 1999)7
Fertility rate (births per woman; 1998)2
Health
Labor forceHealth care access (percent of population; 1991)99
Total (thousands, including foreigners; 1999)530Immunization for measles (percent of population less than 12 months; 1995)85
Of which: female (percent; 1999)35
Annual growth rate (percent; average 1995-99)2Population per physician (1999)1,107
Sugar workers (percent of total employment; 1999)7Population per hospital bed (1999)294
Export processing zone workers (percent of total employment; 1999)18Safe water access (percent of population; 1993)100
Sanitation access (percent of population; 1993)100
Sources: Central Statistics Office; IMF, International Financial Statistics; World Bank, World Development Indicators; and world Bank, Country Assistance Strategy of the World Bank Group for the Republic of Maritius, 19997.

The Republic of Mauritius consists of the islands of Mauritius and Rodrigues, and two very small “outer” islands corresponds to the level of education shown.

Gross enrollment ratio is the ratio of total enrollment, regardless of age, to the population of the age group that officially corresponds to the level of education shown.

Fiscal year July to June.

Sources: Central Statistics Office; IMF, International Financial Statistics; World Bank, World Development Indicators; and world Bank, Country Assistance Strategy of the World Bank Group for the Republic of Maritius, 19997.

The Republic of Mauritius consists of the islands of Mauritius and Rodrigues, and two very small “outer” islands corresponds to the level of education shown.

Gross enrollment ratio is the ratio of total enrollment, regardless of age, to the population of the age group that officially corresponds to the level of education shown.

Fiscal year July to June.

I. THE MAURITIAN LABOR MARKET1

1. Despite strong economic growth, the unemployment rate in Mauritius has been steadily rising during the past decade and now stands at about 9 percent. Adding to this paradox, the increase in unemployment has occurred alongside an influx of foreign workers to firms in the export processing zone (EPZ). As shown in the table below, although total employment increased by 16.5 percent over the period 1990-2001, this rise was insufficient to offset a 24.4 percent increase in the labor force. Consequently, the unemployment rate rose from 2.8 percent in 1990 to 9.0 percent in 2001 9.2 percent if one excludes foreign workers from the base.2

2. Mauritian unemployment figures are derived from incomplete data. Annual surveys of employment and earnings give a reliable picture of conditions in “large establishments” with ten or more workers. Figures for unemployment and for employment outside these large establishments, however, are less certain. Past estimates have been based on a labor force survey carried out in 1995 and on population censuses carried out in 1983, 1990, and 2000. The long gaps between these surveys have proved problematic, as evidenced by the substantial revisions that have been made each time a new census or survey data has become available. Even in census years, the official unemployment figures are uncertain. The Mauritian Central Statistics Office is of the view that there is a tendency for people to falsely declare themselves as unemployed.3 Consequently, census figures for unemployment have typically been adjusted downward.

Population, Labor Force, and Employment(In thousands of persons, unless otherwise noted)
19902001Percent
Prov.Change
Population aged 12+ years808.0951.217.7
Labor force1433.0538.524.4
Employment1420.8490.316.5
Of which: EPZ84.790.87.3
Of which: foreign0.016.5
Unemployment12.248.2295.1
Sources: Central Statistics Office, Digest of Labour Statistics

Includes foreign workers.

Sources: Central Statistics Office, Digest of Labour Statistics

Includes foreign workers.

3. Preliminary results of the 2000 census reveal that the prevalence of unemployment is highly centered on the young, whose unemployment rates are about three times higher than the average Table I.1. This aspect of the unemployment problem is also seen in the fact that 67.6 percent of the unemployed have never held a job. Another striking feature is that, among those who have not completed primary school the unemployment ratio for males is significantly higher than for females, even though the reverse is true at the level of the overall labor force. Finally, the census shows that the people of Rodrigues Island, especially women, are much more likely to be unemployed than the average.

A. Origins of the Unemployment Problem

4. The high level of youth unemployment points to deficiencies in education and training. There are also significant rigidities in the functioning of the labor market that aggravate the problem. In particular, the Mauritian labor market is highly regulated and the relevant institutions operate according to a legalistic approach in which economic criteria play a relatively minor role. High unemployment benefits, in contrast, do not appear to be part of the problem. While such benefits do exist, they are very limited, and many of the unemployed depend on their extended family for support or are engaged in work in the informal sector.

5. At its core, the present system of wage determination relies on centralized tripartite discussions that are held around April-May of each year and involve the government, trade unions, and representatives of private sector employers. The tripartite system results in an annual minimum wage increase that is mainly determined on the basis of the projected inflation rate of the fiscal year ending in June, and that applies to all employers for the following fiscal year starting in July. Wage increases at the lower end of the pay scale are expressed in percentage terms by an amount that has historically been close to the rate of inflation. Wage increases at the higher end of the pay scale are fixed in Mauritian rupees, with the percentage increase for those at the high end of the pay scale much smaller than for those at the low end. Over the past two decades, the average compensation increase given by the tripartite system has almost always been below the level of inflation on which it was based Table I.2. Individual employers are, however, free to adjust wages by more than the minimum, and this is often done, especially for the higher pay brackets. The higher percentage increase given to low wages within the tripartite system has nevertheless contributed to a compression of the wage structure, particularly in the civil service, and may also have been a source of a drift in the overall wage level.

6. On top of the tripartite system, a number of institutional bodies specified in the Industrial Relations Act are authorized to address anomalies in the wage structure and settle labor disputes. Cases may, in principle, be heard on the basis of requests from any of the parties, but in practice private sector employers never make such requests, as the system is regarded as being biased in favor of workers. In the private sector, the National Remuneration Board hears such claims and makes recommendations for minimum wages and other conditions of employment by sector and by occupational category. The National Remuneration Board’s recommendations may be signed into law or brought before the Permanent Arbitration Tribunal for review. The Pay Research Bureau and the Civil Service Arbitration Tribunal perform similar functions for the public sector. These institutions have awarded pay increases only infrequently, but the awards have been quite large, typically in excess of 10 percent.Table I.3

Table I.1.Mauritius: Labor Force and Unemployment, 20001(In persons, unless otherwise indicated)
Total Labor ForceUnemployedUnemployed (In Percent)2/
FemaleMaleTotalFemaleMaleTotalFemaleMaleTotal
Total173,079341,306514,38517,56730,52848,09510.18.99.4
By education
Did not complete primary school71,270132,009203,2795,41712,84918,2667.69.79.0
Completed primary school and more101,809209,297311,10612,15017,67929,82911.98.49.6
By age
24 years or less38,39769,036107,43310,10619,89329,99926.328.827.9
Of which: did not complete primary10,72427,06537,7892,3897,99910,38822.329.627.5
25 years or more134,682272,270406,9527,46110,63518,0965.53.94.4
By residence
Island of Mauritius168,233331,647499,88015,93428,70044,6349.58.78.9
Island of Rodrigues4,8469,65914,5051,6331,8283,46133.718.923.9
Sources: Central Statistics Office; and IMF staff estimates

Including foreign workers.

In percent of the labor force in the same group.

Sources: Central Statistics Office; and IMF staff estimates

Including foreign workers.

In percent of the labor force in the same group.

Table I.2.Mauritius: Wage Increases Granted Under the Tripartite System, 1979/80-2000/011(In Percent)
Year
Average Compensation RateInflation
Private SectorCountryRate
1979/809.333.0
1980/8114.126.5
1981/826.813.4
1982/836.57.4
1983/844.85.6
1984/857.68.3
1985/864.04.3
1986/8710.00.7
1987/880.01.5
1988/8912.016.0
1989/908.810.7
1990/917.612.8
1991/923.72.92.9
1992/936.35.48.9
1993/946.55.59.4
1994/954.23.76.1
1995/964.03.25.8
1996/974.84.47.9
1997/984.03.45.4
1998/994.74.07.9
1999/003.32.85.3
2000/013.02.64.4
Sources: Mauritius Employers’ Federation.

Fiscal year from July to June.

Sources: Mauritius Employers’ Federation.

Fiscal year from July to June.

7. There are significant restrictions on the ability of employers to adjust employment levels. Any reduction in the workforce of a private or a parastatal enterprise requires advance notice to the Minister of Labour and Industrial Relations, and many cases end up before the Termination of Contracts of Service Board (TCSB). Until the TCSB reaches a conclusion, layoffs are difficult to carry out and subject to punitive severance allowances. The TCSB process is slow, taking typically more than one year to resolve. It may lead to the layoff being declared unjustified, in which case the employer is required to pay the worker six times the normal allowance or reinstate the worker to his or her former position.

8. The developments in prices, employment, and output shown in Statistical Appendix Table 18 suggest an inflationary pressure from the wage-setting process. While prices in Mauritius have been growing faster than those of its trading partners, depreciation of the currency has kept the real effective exchange rate broadly unchanged, albeit with substantial year-to-year variation. From 1990 to 2000, compensation rose at an average rate of 9.7 percent per year while output, labor productivity, and consumer prices grew by 6.6 percent, 3.7 percent, and 6.6 percent, respectively. The fact that average compensation levels have risen faster than productivity is reflected in increasing unit labor costs. The widening gap between unit labor cost in national currency and unit labor cost converted to foreign currency reflects the continued depreciation of the Mauritian rupee. The country has thus relied on changes in the exchange rate to compensate for high wage growth.

Unit Labor Costs, 1982=100

B. The Export Processing Zone

9. The EPZ stands out by not being subject to many of the rules and regulations that apply to the labor market in the rest of the economy, notably the laws that limit firms’ freedom to lay off workers. Also, workers in the EPZ are typically paid on a piecework basis, so that income is more directly tied to productivity than is the case in the rest of the economy. The relatively flexible business environment has meant that the EPZ has been an attractive place in which to invest. Labor productivity growth has also been strong in the EPZ, and its output growth has been above the economy’s average.

Table I.3.Mauritius: Wage Increases Granted by the National Remuneration Board and Pay Research Bureau, 1983-961(In percent)
198319851987198819891990199119921993199419951996
Industry
Sugar industryM:7.4
F:20.015.018.0
Factory workers10.0
EPZ11.015.0
Catering8.0
Bus22.015.014.0
Construction35-73
TeaM:5.5M:38.0
F:6.0F:51.0
Distributive trades
13.028.0
Electrical, engineering and mechanical workshops21.0
Animal farmingM:36.0
F:47.0
Attorneys’ and notaries’ employees28-106
Fieldcrop and orchard workersM:20.0
F:51.0
Light metal and wooden furniture19-38
Road haulage10.0
Salt manufacturing industry25-35
Security guards15.0
Messengers7.620.036.0
Printing15-52
Mauritius Employers’ Federation

Male (M); Female (F).

Mauritius Employers’ Federation

Male (M); Female (F).

10. While overall employment in the EPZ in recent years has been broadly stable, there has been a substantial increase in the number of foreign workers, which stands in stark contrast to the rise in unemployment. Hardly present a decade ago, foreign guest workers, almost all of whom are employed in the EPZ, now number some 16,500 about half as many as the increase in the unemployed over the same period. The foreign workers are pre dominantly Chinese contract workers in the textile industry. Mostly women, these workers typically come to Mauritius on three-year contracts, with backgrounds that include three years of vocational training and a few of years of work experience in the textile industry.

11. A number of factors may explain the surge in the number of foreign workers. First, reportedly, Mauritian workers increasingly view employment in the EPZ sector as unattractive, with wages generally lower than the national average, limited opportunity for advancement, and low job security. Consequently, there is little demand for jobs in the EPZ, and firms have difficulties filling vacant positions. Second, the Mauritians that work in the EPZ are seen as less productive than the foreign laborers, who are better trained and more eager to maximize their earnings, for example, by working overtime. Finally, the nature of the fixed-term contracts of foreign workers provides additional flexibility to employers in their efforts to match the workforce to their companies’ staffing needs.

II. THE NEW FISCAL DATA FRAMEWORK4

Policy Overview

The new fiscal data presentation outlined in this chapter highlights the increasing liquidity constraints and weakened fiscal sustainability position of the central government budget. The increase in net borrowing presents a particular fiscal challenge because of the persistent difference between saving and investment, as represented by the consistently negative ratio of the gross operating balance to the net acquisition of nonfinancial assets. This gap widened significantly in 2000/01 (July-June) (-200 percent), compared with 1999/2000 (-45 percent). In 2000/01, most of the financing for government operations and investment came from the one-off sale of equity.

The integrated presentation of flows and stocks reflected in the balance sheet underlines the deterioration in net worth, which is projected to continue. Furthermore, the liabilities-to-assets ratio has been increasing and is projected to remain above 110 percent. The fiscal authorities might benefit from an analysis of the real rate of return on investments made possible by these borrowed resources. In addition, if net worth continues to decline, access to financing could become more expensive, and this could have adverse cash-flow implications and add pressure for fiscal adjustment measures.

While these policy implications are suggested by the new fiscal data presentation, it is important to stress the preliminary nature of the data. Further work is needed to confirm data reclassifications and to fill gaps identified by this exercise.

A. Introduction

12. This note is the first attempt by the IMF staff to apply the Government Finance Statistics Manual 2001 (GFSM 2001) framework to present the fiscal data of a member country. The exercise uses the budgetary central government data of Mauritius. A comparison is made between the old presentation by the African Department of the IMF of fiscal data for Mauritius (as in the Article IV consultation staff report) and the new presentation, consisting of the three main GFSM 2001 tables showing a “Statement of Sources and Uses of Cash,” a “Statement of Government Operations,” and a “Balance Sheet.” The results of the exercise are summarized in subsection C and the note concludes with suggestions for further work.

13. The GFSM 2001 was issued in December 2001, updating the international standard methodology and presentation for government finance statistics (GFS).5 The new methodology introduces an integrated presentation of fiscal operations (flows) with corresponding balance sheets (stocks). The GFSM 2001 incorporates many of the adjustments currently undertaken for fiscal policy analysis in IMF staff reports. To improve the recording of resources received and used, the GFSM 2001 also is based on accrual accounting principles. For most countries, the full set of accounting and statistical standards, especially accrual accounting, will take years to implement. However, as an initial step, many countries can take existing (mostly cash-based) data and reformat the information using the GFSM 2001 framework.6 Perhaps the most innovative and useful contribution of this new presentation is the clear nexus that it establishes between the government’s operations in the short term and long-term fiscal sustainability measured through the change in the net worth of government.

14. The data and findings are illustrative and preliminary, and should be used with caution. The data have not been recompiled; the broad categories readily available to the IMF staff merely have been reclassified. Therefore, the numerical results are only demonstrative; further work would be needed to clarify whether the source data and subclassifications could be bridged more accurately into the new set of GFS tables. However, the analyses permitted by these GFS tables could apply to any level of government or the consolidated public sector. The analytical usefulness of this presentation should encourage further statistical work in this area.

B. Budgetary Central Government Accounts

Fiscal data as presented in the staff report

15. Fiscal data on the budgetary central government are reported in the 2002 Article IV consultation staff report and this accompanying selected issues and statistical appendix paper, using the old presentation (Statistical AppendixTable 21). In short, the overall deficit (including grants) shrank from over 7 percent of GDP in 1995/96-1996/97 to below 3’/2 percent of GDP by 1998/99, due to increased revenue (especially collection of value-added tax, VAT), restrained expenditure (wages and capital), and negative net lending (because of repayments of government liabilities called floating rate notes). However, this overall deficit widened sharply in 2000/01 to just over 5V6 percent of GDP because of lower import duties and smaller VAT collection, and larger interest payments. These deficits were financed primarily from nonbank domestic sources. In 2000/01, the deficit was financed mainly by the sale of equity in state-owned enterprises (shown in a special financing line). However, it is not immediately evident from the table whether the central government faces liquidity constraints or fiscal sustainability issues; also, the extent to which current operations are alleviating or contributing to these pressures is not clear.

Fiscal presentation using the GFSM 2001 analytical framework

Cash statement: studying liquidity constraints

16. Fiscal policy decision makers and advisors need to know whether the government faces an immediate liquidity constraint. The most straightforward answer comes from the net change in the stock of cash, shown explicitly in the GFSM 2001 cash statement (“Statement of Sources and Uses of Cash,”Table II.1). The budgetary central government reduced its stock of cash to about MUR 440 million in 2000/01 from about MUR 610 million in 1995/96.

17. Where has the cash gone? The statement on the sources and uses of cash shows that, in recent years, the net outflow from operating activities (cash receipts minus payments) has been about MUR 1-2 billion per year, and just below MUR 6 billion in 2000/01. Cash spending to acquire nonfinancial (fixed) assets has been roughly MUR 2-3 billion per year. Together, these cash deficits have usually been around MUR 4 billion per year and reached MUR 8.7 billion in 2000/01.

18. The financing activities that generated cash generally offset cash outflows only in 1998/99 (when domestic liabilities issued were large) and in 2000/01 (when significant amounts of domestic financial assets were sold). Foreign creditors generally have been repaid during this period. Based on the data, the liquidity constraint appears to have become increasingly severe. The situation could become more difficult if the budgetary central government is unable to find willing domestic (or foreign) creditors at affordable rates and economically attractive domestic financial asset sales have been exhausted.

Table II.1.Mauritius: Central Government-Statement of Sources and Uses of Cash, 1995/96-2000/011/(In millions of Mauritian rupees)
GFSM 2001 Descriptors1995/961996/971997/981998/991999/002000/01
Prel.
Cash flows from operating activities
Cash receipts from operating activities (inflows +)12,83316,47418,50121,32923,50022,707
Taxes11,43814,00115,68617,90020,37320,189
Social contributions000000
Grants22163217135161199
Other receipts1,1242,4102,5993,2942,9662,318
Cash payments for operating activities (outflows -)-15,425-18,259-20,062-22,940-24,777-28,523
Compensation of employees-5,293-5,897-6,508-7,457-7,763-8,181
Purchases of goods and services-1,719-2,132-1,920-2,180-2,354-2,735
Interest-2,332-2,875-3,503-3,626-3,856-5,527
Subsidies-827-1,063-1,306-1,641-2,003-2,231
Grants-658-709-679-744-763-798
Social benefits-3,802-4,731-5,263-6,245-6,891-7,364
Other payments-795-852-8B3-1,047-1,141-1,686
Net cash inflow (+) from operating activities-2,593-1,785-1,561-1,611-1,277-5,816
Cash flows from investments in nonfinancial assets
Purchases of nonfinandal assets (cash outflows -)-1,783-2,091-1,810-2,617-2,866-2,898
Fixed assets-1,653-1,998-1,695-2,581-2,808-2,813
Strategic assets000000
Valuables000000
Nonproduced assets-130-93-115-36-5884
Sales of nonfinancial assets (cash inflows +)000000
Fixed assets000000
Strategic assets000000
Valuables000000
Nonproduced assets000000
Net cash outflow (-) from investments in nonfinancial assets-1,783-2.091-1,810-2,617-2,866-2,898
Cash surplus (+)/deficit (-)2/-4,376-3,876-3,371-4,227-4,143-8,714
Cash flows from financing activities
Net acquisition of financial assets other than cash (cash outflows -)-960-1,536-252705-1678,674
Domestic-960-1,536-252705-1678,674
Foreign000000
Net acquisition of liabilities (cash Inflows +)5,2355,5393,3243,5554,439-118
Domestic2,8615,3413,5994,7254,9493,466
Foreign2,374198-275-1,170-510-3,584
Net cash inflow (+) from financing activities4,2754,0033,0724,2604,2728,556
Net change in the stock of cash3/-101126-29933129-157
Memorandum item:
The stock of cash (end of the fiscal year)4/610737438470599442
Sources: Mauritian authorities; and IMF staff estimates.

Fiscal year from July to June. Including Privatization Fund; assumes that the values recorded by the IMF African Department are on a cash basis only.

Net cash inflow from operating activities less the cash outflow from investments in nonfinancial assets.

Cash surplus/deficit plus the net cash inflow from financing activities.

Assumes the stock of cash equaled zero at the end of fiscal-year 1973/74.

Sources: Mauritian authorities; and IMF staff estimates.

Fiscal year from July to June. Including Privatization Fund; assumes that the values recorded by the IMF African Department are on a cash basis only.

Net cash inflow from operating activities less the cash outflow from investments in nonfinancial assets.

Cash surplus/deficit plus the net cash inflow from financing activities.

Assumes the stock of cash equaled zero at the end of fiscal-year 1973/74.

Government operations

19. Conceptually similar to the “overall balance” in the old presentation, the GFSM 2001 government operations table(Table II.2) shows “net lending/borrowing,” which can be measured based on financial transactions or on transactions in revenue, expense, and the net acquisition of nonfinancial assets. Net lending/borrowing shows the extent to which the government absorbs or provides financial resources to the rest of the economy.

20. The table shows that the budgetary central government has been absorbing financial resources (net borrowing), and that this absorption increased sharply in 2000/01 to 7 percent of GDP (compared with 3 1/2 percent of GDP in the previous fiscal year). This is a more pronounced deterioration than presented in the staff report table because “net lending minus repayments” are reclassified in the GFSM 2001 framework so that the old “overall balance” excluding “net lending minus repayments” is equal to GFSM 2001 net lending/borrowing.7 In 2000/01, net repayments were classified as the disposal of domestic financial assets, thereby increasing net borrowing.

21. The GFSM 2001 presentation clearly displays the financing of this net borrowing in 2000/01. Foreign financing is identical in both presentations (representing reductions in liabilities to foreign creditors equivalent to almost 3 percent of GDP in 2000/01). Relative to the old presentation, the GFSM 2001 government operations table shows more clearly that the domestic financing is split between the net acquisition of domestic financial assets and the incurrence of domestic liabilities, thus potentially highlighting the future availability of these financing resources. Specifically, it shows the relatively large disposal of domestic financial assets (about 7 percent of GDP) in 2000/01 and the incurrence of domestic liabilities (especially in 1996/97). While the GFSM 2001 government operations table highlights the disposal of financial assets, the old presentation needs a special line to show the disposal of domestic financial assets (“Sale of equity in state-owned enterprises and residual”).

22. The gross operating balance is an equally important balancing item in the GFSM 2001 framework. The gross operating balance shows the changes in net worth of the budgetary central government due to transactions.8 After narrowing from 3 1/2 percent of GDP to about 1 percent of GDP during 1995/96-1999/2000, the gross operating deficit expanded to over 41/2 percent of GDP in 2000/01, reflecting a decline in revenue (especially taxes on international trade and property income) and an increase in expense (mainly interest payments). If information on the consumption of fixed capital (CFC) were available, the net operating balance could be calculated (the gross operating balance minus the CFC), and this would show even larger deficits.9 The primary gross operating balance (i.e., the gross operating balance excluding interest payments) has been in surplus (near 2 percent of GDP) since 1996/97, but turned slightly negative in 2000/01 because of the decline in revenue.

Table II.2.Mauritius: Statement of Central Government Operations, 1995/96-2000/01
GFS codeGFS Descriptors1995/961995/971997/981998/991999/002000/01
Prel.
Transactions offering net worth(In millions of Mauritian rupees)
1Revenue12,83216,47518,50121,32923,50022,707
11Taxes11.4BB14,00115,68617,90020,37320,189
111Taxes on income, profits and capital gains1,9732,2872,4092,7002,8813,039
112Taxes on payroll and workforce000000
113Taxes on property8959761,1021,2091,2061324
114Taxes On goods and services3,7105,1576,0078,0059,3399,466
115Taxes on international trade and transactions4,8995,5706,1575,9736,9356,349
116Other taxes111112131211
12Social contributions8192101114120123
13Grants22163217135161199
14Other revenue1,0432,3192,4983,1802.8462,195
141Property income6461,9542,0742,2461.S621.660
2Expense15.4251B.2592D.B6222,94024,77728,523
21Compensation of employees [GFS]5,2935,8976,5087.4577,7638,1 Bl
22Use of gauds and services1,7192,1321,9202.1802,3542,735
23Consumption of fixed capital [GFS]000000
24Interest [GFS]2,3322,8753.5033,6263,8565,527
241To nonresidents301473512501453401
242To residents other than general government2,0312,4022,9923,1253,4035,125
25SubsidiesS271,0631,3061,6412,0082.231
251To public corporations70120175312313315
252To private enterprises7579431,1311,3291,6951,916
26Grants688709679744763798
27Social benefits [CFS]3,8024,7315,2636,2456,8917,364
271Social security benefits1,6122.2352,5082,9333,2603,566
272Social assistance benefits1,2661,4301,5471,9282.0122,118
273Employer social benefits9241,0661,2081,3841.6191,680
28Other expense7958526831,0471,1411,686
Gross operating balance1/-2,593-1,784-1,561-1,611-1,277-5,816
Transaction In non Financial assets
31Net acquisition of nonfinancial assets2/1,7832,0911,8102,6172,8662,898
311Fixed assets1.6531,9981,6952,5812,8082,813
314Nonproduced assets13093115365884
Net lending/borrowing (GPS)3/-4J76-3,876-3,371-4,227-4,143-8,714
Transactions in financial assets and liabilities (financing)-4,376-3,876-3.371-4,227-4,143-8,714
32Net acquisition of financial assets8591,663-47-672296-8,831
321Domestic8591.663-47-672296-8,831
3212Currency and deposits-101126-29933129-157
3214Loons96D2,284252-705167-1,574
3215Shares and Other equity0-7480007.100
322Foreign000000
33Net acquisition of liabilities5,2355,53833243,5554,439-118
331Domestic2,8615,3403,5994,7254,9493,466
3313Securities other than shares1,7084,2162,3745,7212,1334.581
3314Loans1,1551.1141.332-1,5382,708-1,116
3318Other accounts payable-310-1075431080
332Foreign2.374198-275-1,170-510-3,584
3324Louis2,374196-275-1,170-510-3,584
(In percent of GDP; unless otherwise
1Revenue17.319.719.620.120.918.2
2Expense20.821.821.321.622.122.9
Gross operating balance1/-3.5-2.1-1.7-1.5-1.1-4.7
Primary gross operating balance-0.41.32.11.92.3-0.2
31Net acquisition of nonfinancial assets 2/2.42.51.92.52.62.3
Net lending/borrowing (GFS)3/-5.9-4.6-3.6-4.0-3.7-7.0
32Net acquisition of financial assets1.2200.00.6D.3-7.1
33Net acquisition of liabilities7.06.63.53.44.0-0.1
331Domestic3.86.43.84.54.42.8
332Foreign3.20.2-0.3-1.1-0.5-2.9
Memorandum items:
GDP at market prices (millions of Mauritian rupees)74,30583,76394,167106,042112,290124,665
Gross operating balance/Net acquisition of nonfinancial assets (ratio)-1.45-0.85-0.86-0.62-0.45-2.01
Sources: Mauritian authorities; and IMF staff estimates

Fiscal year from July to June. The net operating balance equals revenue minus expense, when expense includes the consumption of fixed capital. The gross operationg balance equals revenue minus expense other than consumption of fixed capital.

Acquisitions minus disposals and consumption of fixed capital

Net lending/borrowing equals the net operating balance minus the net acquisition of nonfinancial assets. It is also equal to the net acquisition of financial assets minus the net incurrence of liabilities.

Sources: Mauritian authorities; and IMF staff estimates

Fiscal year from July to June. The net operating balance equals revenue minus expense, when expense includes the consumption of fixed capital. The gross operationg balance equals revenue minus expense other than consumption of fixed capital.

Acquisitions minus disposals and consumption of fixed capital

Net lending/borrowing equals the net operating balance minus the net acquisition of nonfinancial assets. It is also equal to the net acquisition of financial assets minus the net incurrence of liabilities.

23. Measuring the gross operating balance separately is important because it excludes the net acquisition of nonfinancial assets. In turn, the net acquisition of nonfinancial assets simply reflects a shift in the asset holdings of the central government (for example, the use of cash to purchase machines).

24. The ratio of the gross operating balance to the net acquisition of nonfinancial assets shows the extent to which government operations lead to saving (or dissaving) that can be invested (or needs to be financed). The negative ratio reported in the government operations table means that additional financing was required to afford government operations and investment. Moreover, this ratio worsened from -45 percent in 1999/2000 to about -200 percent in 2000/01. It also could be calculated using an “own-resources” operating balance, in order to emphasize this gap (by subtracting grants from foreign governments and international organizations).10

25. The need to find additional financing should make investment decisions more sensitive to relative rates of return and macroeconomic impacts. The relative rates of return of nonfinancial and financial assets could be compared to evaluate the fiscal authorities, asset portfolio choices. (Table II.2) shows that the central government has invested in fixed assets (about 21/2 percent of GDP per year). Of course, it may be important to take intoconsideration non-financial returns on these investments, especially in social sectors such as health and education. At the same time, it also would be important to take into account possible crowding-out impacts of public investment.

A balance sheet: are government operations sustainable?

26. While the government operations table shows the transactions of government, the balance sheet (Table II.3) illustrates the fiscal sustainability of these operations and takes into account other economic flows (such as revaluations and natural disasters). Balance sheets for the periods 1994/95-1999/2000,1999/2000-2000/01, and the projection period 2000/01-2006/07 were constructed using the accumulation of budgetary central government transactions since 1973/74 (assuming zero opening balances in that year). As an example of other economic flows, revaluations were based on estimates of the stock of nonbank domestic debt classified as “domestic liabilities, securities other than shares.” The difference between the opening and closing stock was defined to be equal to transactions and a residual, the latter representing revaluations.11 However, more complete estimates of other economic flows could be included in the balance sheet if market valuation were applied consistently to all assets and liabilities. In particular, the balance sheet should reflect the current written-down value of assets.

27. Are the fiscal operations of the budgetary central government sustainable? The answer depends on trends in the government’s net worth (a stock variable). Based on the information shown in these illustrative balance sheets, net worth has been falling. During 1994/95-1999/2000, the net worth of government deteriorated from MUR 14.3 billion (21½ percent of GDP) to MUR 5.4 billion (under 5 percent of GDP), because net financial worth declined. The sixfold buildup of domestic liabilities led to a net financial worth of minus MUR 26.8 billion (-24 percent of GDP) during those five years. This more than offset the acquisition of nonfinancial assets (MUR 32.1 billion by end-1999/2000).12 In addition to these trends, the budgetary central government also disposed of domestic equity worth MUR 7.1 billion. Thus, by end-2000/01 the net financial worth was minus MUR 35.5 billion (-28½ percent of GDP), and overall net worth became negative (-½ of 1 percent of GDP).

28. Medium-term staff projections suggest a further deterioration in net worth for the budgetary central government, despite the almost doubling of investment in fixed assets. This deterioration is projected to comprise the significant incurrence of liabilities to domestic and foreign creditors. This projected deterioration in the balance sheet is not sustainable, and needs to be reversed.

Table II.3.Mauritius: Balance Sheet for Budgetary Central Government Based on the GFSM 2001, 1994/95-2006/071/(In millions of Mauritian rupees, unless otherwise indicated)
GFS Descriptors1994/95-1999/001999/00-2000/012000/01-2006/07
Opening BalanceTransactionOther economic Flows2/Closing/Opening BalanceTransactionOther economic Flows2/Closing/Opening BalanceTransactionOther economic Flows2/Closing Balance
Net worth and its changes14,328-8,781-1875,360-5,8160-455-9,6730-10,128
Nonfinancial assets18,47513,669032,1442,898035,04132,624067,665
Fixed assets18,47513,669031,7122,813034,52631,624066,150
Nonprodoced assets043104318405151,00001,515
Net financial worth-4,146-22,450-187-26,783-8,7140-35,496-42,2970-77,793
Financial assets12,5152,4S8014,973-8,83106,1423,17609,318
Domestic12,5152,458014,973-8,83106.1423,17609.318
Currency and deposits3212780599-157044200442
Loans4,3462,92707,274-1,57405,7003,176.008,876
Shares and other equity7,848-74807,100-7,10000000
Foreign0000000000
Monetary gold and SDRs0000000000
Liabilities16,66124,90818741,756-118041,63845,473087,111
Domestic16,48924,66118741,3373,466044,80340,065084,867
Securities other than shares5,26517,20418722,6564,581027,23719,570046,807
Loans10,8277,836018,663-1,116017,54820,494038,042
Other accounts payable397-37901800180018
Foreign1732470419-3,5840-3,1655,40802,243
Loans1732470419-3,5840-3,1655,40802,243
Memorandum items:
Net worth (in percent of GDP)21.54.8-0.4-4.6
Net financial worth (in percent of GDP)-6.2-23.9-28.5-35.7
Liabilities/assets ratio0.540.891.011.13
Liabilities/financial assets ratio1.332.796.789.35
Sources: Mauritian authorities; and IMF staff estimates.

Fiscal year from July to June. Assumes all items in the balance sheet were equal to zero at the end of 1973/74.

Other economic flows record holding gains and losses and other changes in the volume of assets and liabilities. The only entries in this illustrative balance sheet refer to the residual revaluation estimated from the stock of domestic budgetary central government securities other than shares (domestic debt). The residual equals the closing balance for domestic debt minus the opening balance minus recorded domestic debt transactions for the period. More complete estimates require consistent application of market valuation of assets and liabilities.

Sources: Mauritian authorities; and IMF staff estimates.

Fiscal year from July to June. Assumes all items in the balance sheet were equal to zero at the end of 1973/74.

Other economic flows record holding gains and losses and other changes in the volume of assets and liabilities. The only entries in this illustrative balance sheet refer to the residual revaluation estimated from the stock of domestic budgetary central government securities other than shares (domestic debt). The residual equals the closing balance for domestic debt minus the opening balance minus recorded domestic debt transactions for the period. More complete estimates require consistent application of market valuation of assets and liabilities.

29. The liabilities-to-assets ratio (which increased from over 50 percent in 1994/95 to about 90 percent in 1999/2000 and about 100 percent in 2000/01) underlines the message inherent in the fiscal profile: the government has borrowed, mainly from domestic sources, in order to increase investment. The projections reveal that this ratio would remain over 110 percent in the medium term. The balance sheet, therefore, draws analytical attention to the need to measure the return on investments and compare them against average interest rates on the stock of domestic debt. In the long term, fiscal sustainability will depend on the relative real rate of return for the overall asset portfolio of the budgetary central government. Of course, this relative measure depends not only on rates of return on investments (both social and economic), but also on the willingness of creditors to lend and on related financial market conditions. The implication is that, if net worth continues to weaken, access to financing could become more expensive, with adverse implications for cash flows and added pressure on fiscal adjustment measures.

C. Summary of the Exercise

30. In summary, the old fiscal presentation supports the analysis of the overall fiscal balance through the description of financing transactions, and of corresponding revenues and expenditures. Occasionally, it includes some supplementary lines to fully explain these transactions. However, it does not directly address questions of liquidity or fiscal sustainability. In contrast, the GFSM 2001 framework provides direct information on the liquidity constraints of the government through variables such as the stock of cash and the associated changes in that stock. Also, resource flows recorded in the government operations table show information similar to the old presentation, especially when the available information is recorded on a cash basis. However, the government operations table also clearly links the government’s net use of financial resources in the economy with the corresponding transactions. These transactions can be grouped into two categories: (1) those that affect net worth, such as revenue or expense; and (2) those that do not affect net worth, such as a portfolio choice among assets or a purely financial transaction, e.g. using cash to pay off a liability. Moreover, the balance sheet emphasizes the impact of transactions on the net worth of the government (with useful information on its net financial worth). The data inform policymakers about the sustainability of their fiscal operations and financial choices. In addition, policymakers would be interested in having a monthly cash statement, quarterly operations tables, and annual balance sheets to study the impacts of fiscal policy.

31. This exercise has demonstrated the usefulness of the new presentation and has highlighted some important gaps in the fiscal information, specifically the data on the consumption of fixed capital and the lack of estimates for “Other Economic Flows.” To measure the latter, market-valued data of assets and liabilities and estimates of cyclone damage to government assets would be useful.

D. Suggestions for Further Work

32. This exercise was based on a preliminary reformatting of data recorded by the IMF’s African Department for the 2002 Article IV consultation staff report. Compilers of fiscal statistics would need to pursue these efforts to verify and refine these preliminary estimates. The list of suggested further steps below is not exhaustive; however, the analytical value of the GFSM 2001 presentation may justify the resources required to continue this work:

  • Recheck the mapping of transactions to the GFSM 2001 classification structures in the cash statement and government operations table.
  • Build this mapping structure directly into the chart of accounts by adding GFSM 2001 codes in a separate column.
  • Broaden the coverage of the exercise to include extrabudgetary funds, social security funds, local governments, and nonfinancial public corporations, and then consolidate this information.13
  • Refine the estimates in the balance sheet (to reflect market values and accrual recording), beginning with liabilities, then working on financial assets, and finally reviewing estimates of nonfinancial assets. Statistical work on the monetary statistics, balance of payments, international investment position, and national accounts should be useful in these exercises.
  • Develop estimates of the consumption of fixed capital drawing on information in the national accounts and other countries’ experiences.
  • Develop estimates of other economic flows (both valuation changes and other changes in the volume of assets and liabilities). This will require the consistent application of market valuation of assets and liabilities. Recording other economic flows also allows a clear identification of the economic impact of large, unique events, such as cyclones.

III PRIVATE SAVINGS IN 2000/0114

33. National accounts estimates for 2000/01 (July-June) indicate that the external current account balance improved by about 3½ percent of GDP over the previous year while public savings declined by roughly the same amount. These figures, together with the decline in total investment of about 1 percent of GDP, imply a remarkable jump in private savings of almost 6 percent of GDP (see table below).

Savings and Investment(In percent of GDP, unless otherwise indicated)
1997/981998/991999/002000/01
Prov.
Gross domestic investment27.525.425.824.9
Public6.26.26.56.8
Private (including public enterprises)21.319.219.318.0
Of which: increase in stocks2.70.50.11.5
Gross national savings24.723.924.226.7
Government-1.0-0.60.0-3.4
Private (including public enterprises)25.724.524.330.1
External current account balance (including transfers)-2.8-1.5-1.61.8
Real GDP (annual percentage growth)16.05.32.67.2
Real sugar output (annual percentage growth)15.02.5-43.952.5
Sources: Mauritian authorities; and IMF staff estimates.

Sugar crops and milling included in fiscal year harvested’ otherwise, averages of calendar-year data.

Sources: Mauritian authorities; and IMF staff estimates.

Sugar crops and milling included in fiscal year harvested’ otherwise, averages of calendar-year data.

34. The fact that private savings are calculated as a residual raises the question of whether the jump is consistent with economic developments or instead reflects discrepancies in the measurement of national accounts. There are at least two important economic developments that would have boosted private savings in 2000/01:

  • First, the private sector benefited in 2000/01 from a reduction in excise and international trade taxes on the order of 2 percent of GDP. The smaller government revenue collection was, of course, reflected in the deterioration of government savings. To the extent that the private sector believed that the reduction in taxes would have to be reversed because the larger deficit was unsustainable, it may have saved the bulk of it, as suggested on Ricardian equivalence grounds.15
  • Second, profits in the whole sugar sector, including small and large planters, as well as milling factories, improved substantially in 2000/01, with sugar output increasing by 53 percent after a contraction of 44 percent in the previous year due to a severe drought. In addition, the upsurge in sugar production had a positive impact on operating profits of sugar factories that also generate electricity from bagasse (a sugarby-product). This is because more of free bagasse “and less of expensive importedcoal” was used to drive turbines, resulting in significant cost savings and higher operating profits from power generation (see also Section IV).

35. A number of data deficiencies may also explain the apparent sharp rise in private savings:

  • Trade data, as reported by the Central Statistics Office (CSO) and the Bank of Mauritius (BOM), can differ by up to 1½ percent of GDP, with discrepancies arising from different coverage of trade flows in the Freeport area. It is not evident which of the two estimates of trade is more reliable, partly because the wider coverage by the CSO (which covers the Freeport area) may in fact include some double accounting. If the current account surplus in 2000/01 is overstated, so too would be (the residually calculated) private savings.
  • In deriving GDP data for fiscal years (FYs, July to June) from the calendar-year data compiled by the CSO, the sugar sector is treated differently from other sectors of the economy because of its extreme seasonality. While the crop year runs from November to October, the crop is harvested and milled almost entirely between July and December. Thus, for example, sugar production for calendar-year 1999 is fully reflected in GDP data for FY 1999/2000. By contrast GDP data for all other production sectors for FY 1999/2000 are calculated as the arithmetic average of the calendar-year data for 1999 and 2000. Whereas this special treatment of the sugar sector attempts to accommodate its pronounced seasonality, it does introduce a level of distortion that becomes more evident when GDP data from the production and expenditure sides are reconciled. This distortion is all the more prominent, when there are large swings in sugar production, as was the case between 1998 and 2000. Thus, the poor sugar crop in 1999 would have negatively affected the expenditure data (and, hence, private sector savings) in both 1998/99 and 1999/2000, but only the production data for 1999/2000.
  • When the production and expenditure data of the national accounts are reconciled, the residual (or statistical error) is put into the “increase in stocks” category.16 There was, in fact, a significant increase in stocks in FY 2000/01, compared with the preceding two years, which is consistent with the previous point.

36. The BOM and CSO are working to reconcile their differing trade data. It is hoped that, with ongoing IMF technical assistance, the problem of the inconsistent treatment in the national accounts of the sugar sector will be addressed when the CSO begins compiling and reporting quarterly national accounts data in 2003. This exercise would allow the CSO to directly and more accurately compute national accounts data on a fiscal-year basis by simply aggregating data for the relevant quarters.

IV. RESTRUCTURING THE MAURITIAN SUGAR SECTOR17

A. Preferential Agreements

37. The Mauritian sugar sector has benefited from a variety of preferential agreements for the past half century. In the early 1950s, the United Kingdom signed the Commonwealth Sugar Agreement (CSA) with six sugar-producing colonies, including Mauritius, ensuring access to the British market for guaranteed quantities at preferential prices. Soon after the United Kingdom joined the European Economic Community (EEC), a group of African, Caribbean, and Pacific (ACP) countries concluded a successor agreement with the EEC, known as the Sugar Protocol. Under the Sugar Protocol, which was annexed to the First Lome" Convention as a special subject matter, the EEC undertook “… for an indefinite period to purchase and import, at guaranteed prices, specific quantities of cane sugar … within the price range obtained in the Community.” Mauritius’s annual quota under the Sugar Protocol was the largest of any single country “500,000 metric tons” significantly larger than its share of 386,000 tons under the CSA.

38. In 1995, the European Union (EU) signed the Special Preferential Sugar Agreement (SPSA) with 16 ACP states, including Mauritius. Under the SPSA, the EU agreed to import for an initial period of six years variable quantities of raw cane sugar in addition to the amounts specified in the Sugar Protocol. The preferential price accorded under the SPSA was set at 85 percent of the prevailing guaranteed price under the Sugar Protocol. Mauritius’s allocation under the SPSA during 1995-2001 was about 65,000 tons per year,18 well above the average quantities that Mauritius was able to deliver to the EU (Table 8).

39. Mauritius has profited enormously from the preferential access of its sugar exports to the EU market because the sugar price under the Sugar Protocol, which is based on the price obtained by EU producers under the EU Common Agricultural Policy, has been above the world market price by 100-200 percent. It is estimated that, during 1975-2000, as a direct result of the Sugar Protocol (and to a lesser degree the SPSA), the cumulative benefit to Mauritius from quasi transfers from European consumers amounted to about US$3.5 billion. On an annual basis, this represented an average of 6.1 percent of Mauritius’s GDP.

International Sugar Prices

(In U.S. dollars per metric ton)

Source: IMF, International Financial Statistics.

40. The privileged status that Mauritius has enjoyed for its sugar over the past half-century is now threatened. In February 2001, the EU decided to grant immediately duty-free and quota-free access for imports of most products (except arms and ammunition) from 48 least-developed countries under what has since become known as the Everything But Arms (EBA) initiative. Although the EBA initiative provides transitional arrangements for banana, rice, and sugar, even these will be eliminated gradually by 2006-09. The first sugar agreement that was affected by this new initiative was the SPSA, which expired in mid-2001. The SPSA was subsequently renewed for another five years. However, Mauritius’s quota was drastically lowered to 38,000 tons for the 2001/02 crop year, and it is scheduled to be gradually eliminated over the following five years.19 Mauritius’s preferential access under the Sugar Protocol is also likely to be lowered in the medium term as the EU’s Common Agricultural Policy is further liberalized “and the guaranteed sugar price within the EU considerably reduced” consistent with commitments that the EU has undertaken vis-à-vis the World Trade Organization.

B. The Sugar Sector Strategic Plan

41. The consequences of the erosion of preferential access to the European sugar market will be profound for the Mauritian economy. The sugar industry will have to significantly cut average production costs, currently estimated at more than 25 percent above world market prices, and modernize and centralize its milling operations. In the longer term, Mauritius will need to adapt its economy to the changing, more liberalized, nature of the international sugar market and lessen its dependence on sugar by reallocating human and capital resources to new areas of activity to sustain economic and employment growth. In this vein, the government, in close consultation with representatives of the sugar industry and labor unions, developed a new Sugar Sector Strategic Plan, which was put into effect in 2001 through the

  • ensure sufficient production of sugar to meet all of Mauritius’s international export commltments;
  • reduce production costs from the current level of US$0.18 per pound to US$0.12 per pound by 2008;
  • lower the number of sugar factories from 14 to no more than 8 by 2005;
  • increase the generation of electricity in sugar factories “using partly bagasse (a sugar by-product)” from the current share of 27 percent of electricity production to40 percent in the medium term (Table 13);
  • allow the conversion of agricultural land for use in high-growth industries, such as tourism and information technology; and
  • reduce excess labor in plantations and sugar factories through the Voluntary Retirement Scheme.

42. In order to attain the above objectives, a number of amendments were passed to labor, pension, tax, and land-use laws that loosened the stringent protections regarding employment and land use by the sugar industry, and provided tax exemptions for the conversion of land from agricultural to other private use.

C. The Voluntary Retirement Scheme

43. A key element of the strategic plan is the Voluntary Retirement Scheme (VRS), which allows planters and milling factories to offer a generous separation package to encourage early retirement on a voluntary basis. The VRS is primarily aimed at female agricultural workers aged 50 years or more and at male agricultural and factory workers aged 55 years or more. For all other workers, the employer may also choose to offer the VRS.

44. Those workers who choose to take early retirement under the VRS receive cash compensation equivalent to two months’ salary for every year of service. In addition, each worker is given a plot of land on which to build a private dwelling. The employer is responsible for all the necessary infrastructure, including subdividing the plots, building roads, and providing access to water, electricity, and sewerage. In order to facilitate the building of a private house on the acquired land, the retired worker is eligible for a concessional loan from the Mauritius Housing Company and a government-sponsored grant from the National Housing Development Company. Children of retired workers are also eligible for various government scholarships for secondary and tertiary education. Finally, all cash and land compensation that accrues to the retiring worker is exempt from income tax.

45. In order to allow sugar employers to recoup part of the costs of the VRS, the government has allowed them to sell some of their land after it has been rezoned from agricultural to other use. Specifically, under a new “1:3” scheme, the employer is allowed to convert 600 arpents of agricultural land to other use, while surrendering 200 arpents to the government in lieu of land conversion tax.20 In addition, the conversion of agricultural land for use in the tourism, information technology, and biotechnology sectors will be allowed and will be exempted from the land conversion tax (Table 41). The sugar employer also benefits from a reduced rate on the land transfer tax and is exempted from paying capital gains tax or income tax on the realized profits from the sale of land. Finally, a concessional credit line of up to MUR 2 billion is being provided by the Bank of Mauritius to finance the VRS.21

D. Implementation of the Sugar Sector Strategic Plan

46. The implementation of the Sugar Sector Strategic Plan has proceeded very smoothly, and the experience with the VRS, has been particularly positive. During the first year of its implementation (as of end-March 2002), about 7,500 workers took early retirement under the VRS out of a total of some 28,000 employed in the sugar sector in December 2001. About MUR 2.8 billion has been paid out in compensation, including the value of about 230 hectares of land that were transferred from sugar employers to retiring workers (equivalent to about 300 square meters per retiree). Concurrently, the sugar industry is pursuing its centralization program with the shutting down of two more factories and the transfer of the processing of the sugar cane to more modern and efficient milling plants.

V. MONEY DEMAND IN MAURITIUS22

A. Introduction

47. Over the past 25 years, Mauritius has undergone rapid growth and development and has evolved from a low-income country to a middle-income country.23 The monetary system has both been instrumental in, and has benefited from, this rapid pace of growth. Nominal GDP has grown by an average of 15 percent over the same period, while inflation declined from an average of 17 percent in the late 1970s to 6 percent in the late 1990s (see table below). Broad money growth has averaged 17 percent, outstripping the growth in narrow money (11 percent) by a wide margin. In the 1970s, the real interest rate on time deposits was often negative, a trend that reversed itself in the 1980s and 1990s, thereby contributing to the growth in time deposits and broad money. This growth in broad money led to a decline in the income velocity of money from 2.3 in the early 1980s to 1.3 in the late 1990s.24

Trends in Broad Money, Nominal GDP, Inflation, and Interest Rates, 1976-2000
Broad MoneyGDPCPIGDP/M2LIBOR1/DEPO2/Treasury Bill
(M2)Rate
(Annual percent change)(In percent per annum)
1976-8014.720.717.42.29.37.87.7
1981-8516.713.99.12.311.710.310.2
1986-9024.818.87.51.77.910.810.6
1991-9517.212.07.11.44.710.19.7
1996-200011.911.46.31.35.710.011.1

London interbank offered rate.

Average interest rate on time deposits of maturity from six months to one year.

London interbank offered rate.

Average interest rate on time deposits of maturity from six months to one year.

48. The monetary system has also undergone institutional change: Mauritius moved from a system of fixed exchange rates to a managed float in 1983, thereby imparting flexibility to domestic monetary policy and interest rates; in addition, exchange controls were abolished in1994, enabling the free flow of capital. During the late 1980s and the early 1990s, the monetary authorities moved gradually from administered interest rates and credit ceilings to market-based, indirect methods of implementing monetary policy (Fry and Roi, 1995). The Bank of Mauritius (BOM) currently targets reserve money to achieve an informal inflation target. The BOM is considering moving to a formal inflation-targeting framework, which will require, among other things, a better understanding of the monetary policy transmissionmechanism.25 In this study, we attempt to contribute to this understanding by modeling the demand for real money balances in Mauritius.

B. Modeling Issues and Data

49. Empirical studies of the demand for money have converged to a specification in which real money balances are a function of a scale variable (as measured by real income, wealth, or expenditure), the “own” rate of return of money, and the opportunity cost of money (Ericsson, 1998). The opportunity cost of holding money is usually proxied by either the domestic inflation rate or rates of return on alternative assets, either domestic or foreign. The own rate of return on money is typically measured by the interest rate offered on time deposits.

50. It is not clear whether treasury bills should be viewed as an alternative investment avenue for domestic investors in Mauritius, given that individuals and nonfinancial corporations were allowed to purchase treasury bills for the first time in 1998. However, after Mauritius moved to a managed floating exchange rate system, the volume in the treasury bill market expanded rapidly as the government made increasing recourse to this instrument to meet its funding needs, and the BOM sold treasury bills, even in excess of government needs, to control overall liquidity.26 Therefore, treasury bills were an important investment for financial corporations after 1983, and the yield on these bills influenced interest rates on alternative investments, such as corporate debentures, and can be viewed as a proxy for the opportunity cost of money. Similarly, the London interbank market became an alternative investment for Mauritian investors after exchange controls were lifted in 1994.

51. We examine the hypothesis that there exists a stable relationship among the logarithm of real broad money (m-p), the logarithm of real gross domestic output (y), and various rates of return. The rate of return proxies we use are the following: domestic inflation (INF), the average interest rate offered on time deposits with maturities of six months to one year (DEPO), the weighted-average yield of treasury bills (TBILL), the annualized three-month London interbank offered rate (LIBOR), and the depreciation rate of the Mauritian rupee against a trade-weighted basket of currencies (DEPR).27

52. Following the literature (for instance, Sacerdoti and Xiao; 2001 and Nachega, 2001), the demand for real money balances is specified as follows (with lower-case symbols indicating logarithms):

(m-p)t = a0 + atyt + a2INFt + a3DEPOt + a4TBILLtD 1 + a5LIBORtD 2 + a6DEPR + εt,

where et is the error term. We have also included two interactive dummy variables, D1 and D2, to test for major institutional changes: the dummy variable DI takes a value of 1 after 1983, when Mauritius moved to a managed float exchange rate system, and 0 otherwise; the dummy variable D2 takes a value of 1 after 1994, when exchange controls were removed, and 0 otherwise.

53. The empirical analysis is based on quarterly data from 1976: Ql to 2001: Q2. Money is defined as the sum of demand and time deposits. As GDP is available only at an annual frequency, quarterly GDP data are obtained through geometric interpolation. Average interest rates on time deposits and the yield on treasury bills are taken from the BOM’s annual report, and currency depreciation is compiled from the IMF’s Information Notice System. All other data are taken from the IMF’s International Financial Statistics database.

C. Cointegration Analysis

54. We use cointegration analysis to examine the long-run demand for money (see Johansen and Juselius, 1990; and Johansen, 1992). The empirical investigation begins with an analysis of the time series properties of the variables of interest in the demand for money function, namely, m-p, y, INF, DEPO, TBILL, LIBOR, and DEPR. The augmented Dickey- Fuller (ADF) test indicates that, with the exception of DEPR, all of the variables are I(1), that is, they are nonstationary (results are reported in the table below).28DEPR is stationary, implying that it can be excluded from the long-run cointegration analysis but included in the error-correction model to capture the short-run dynamics of the demand for money.

Unit Root Test Results
Lags IncludedADF /-Values on LevelsLags IncludedADF f-Values on First Differences
m-p4-2.6193-3.706*
y5-2.4024-4.031**
INF5-3.3064-4.848**
TBILL1-3.2350-8.406**
LIBOR2-1.8541-9.109**
DEPR2-7.044**1-7.576**
DEPO4-2.2443-6.226**
Notes: The ADF is the augmented Dickey-Fuller test. The null hypothesis is that the series contains a unit root in levels or in first differences; a constant and time trend are included in each test. For each series, we start with five lags and sequentially remove the insignificant ones.
Notes: The ADF is the augmented Dickey-Fuller test. The null hypothesis is that the series contains a unit root in levels or in first differences; a constant and time trend are included in each test. For each series, we start with five lags and sequentially remove the insignificant ones.

55. Results from Johansen’s (1988 and 1991) maximum likelihood procedure for cointegrated vectors in a vector autoregression (VAR) are reported in the table below. The VAR model consists of four lags and a constant term.29 The results of the Johansen cointegration procedure strongly reject the null hypothesis of no cointegrating vector (r = 0); at the same time, they fail to reject the null hypothesis of no more than one cointegrating vector, thereby implying that there is exactly one cointegrating relationship. The estimated cointegrating relationship, which is reported below, may be written as

(m-p)t = 2.2 + 2.11yt - 0.009INFt + 0.01DEPOt - 0.02TBILLtD 1 - 0.03LIBORtD 2 + εt

where et is the error term and the constant is calculated so that the errors sum to zero. This equation has the properties of a money demand function in that real money demand is positively related to output and the own rate of return on money, and negatively related to inflation, the treasury bill rate after 1983, and LIBOR after 1994. The coefficients of all the variables entering the cointegrating equation except inflation are significantly different from zero at the 99 percent confidence level; the coefficient of inflation is significantly different from zero at the 90 percent confidence level.

Johansen Cointegration Analysis of Broad Money Demand
Eigenvalues0.420.280.150.090.080.00
Hypothesesr = 0r≤1r≤2r≤3r≤4r≤5
λtrace117.4**65.233.817.88.50.07
5 percent critical value94.268.547.229.715.43.8
λmax52.1**31.416.09.38.40.07
5 percent critical value39.433.527.121.014.13.8
Cointegrating vectorm-pyINFDEPOTBILL٠DlLIBOR٠D2
1.00-2.110.009-0.070.020.03
Adjustmentm-pyINFDEPOTBILL٠DlLIBOR٠D2
Coefficients-0.100.01-0.761.45-0.87-1.22
Significance tests for coefficientsm-pyINFDEPOTBILL٠DlLIBOR٠D2
x2(1)18.30**18.97**3.2111.79*8.75**9.57**
Probability0.000.000.070.000.000.00
Weak exogeneity testsm-pyINFDEPOTBILL.DlLIBOR.D2
x2(1)3.5060.3440.0339.385**0.5205.637*
Probability0.0610.5570.850.0020.4710.018
The VAR includes four lags on each variable and a constant term. The system-based test statistics for significance and weak exogeneity tests are evaluated under the assumption that r=l, and hence are asymptotically distributed as %2(1) if significance or weak exogeneity of the specified variable is valid. The estimated VAR is stable since all roots have moduli that are less than one.
The VAR includes four lags on each variable and a constant term. The system-based test statistics for significance and weak exogeneity tests are evaluated under the assumption that r=l, and hence are asymptotically distributed as %2(1) if significance or weak exogeneity of the specified variable is valid. The estimated VAR is stable since all roots have moduli that are less than one.

56. The coefficient on y implies an income elasticity of 2.11; this, in turn, suggests that on average, in Mauritius, the increase in real money demand associated with a given increase in real output was twice the size of the increase in real output. This elasticity is an indicator of the rapidity with which financial deepening occurred in Mauritius over the sample period a result of increasing confidence in the domestic financial system owing to successful development policies, high growth rates in output, declining inflation, and positive real interest rates maintained over an extended period of time.

57. Although the null hypothesis of weak exogeneity cannot statistically be rejected at the 95 percent confidence level for real money balances, it should be noted that the p-value is quite low, so that it is plausible to assume that the variable is not weakly exogenous. In addition, the hypothesis of weak exogeneity is strongly rejected for interest rates on time deposits and LIBOR, while it fails to be rejected for real output, the treasury bill rate, and inflation. This suggests that if a shock were to cause the system to deviate from its long-run equilibrium, real money and time deposit interest rates would adjust over time to restore long-run equilibrium.30

D. Single-Equation Error-Correction Model For Money

58. We now estimate a single-equation error-correction model (ECM) for money demand and employ a general-to-specific modeling strategy to arrive at an empirically parsimonious specification. The general model is estimated with a constant, four lags of each variable in first differences, four lags of currency depreciation, and the error correction term from the long-run money demand equation, defined as

ecm = [(m-p) - 2.2 - 2.11y + 0.009INF - 0.07DEPO + 0.02TBILLD 1 + 0.03LIBORD 2].

F-Statistics and Schwarz Criteria for Sequential Reduction of the General Error-Correction Model to a Parsimonious Model
Null HypothesisMaintained Hypothesis
ModelKSCModel 1Model 2Model 3Model 4
130-2.80
225-2.941.38
(0.24)
319-3.141.211.03
(0.30)(0.41)
413-3.371.060.900.77
(0.41)(0.54)(0.59)
56-3.631.020.890.830.90
(0.46)(0.59)(0.63)(0.51)
Notes: The first three columns report the model number, the number of unrestricted parameters, k, and the Schwarz criterion (SC). The two entries within a given block of numbers in the last four columns are the F-statistic for testing the null hypothesis against the maintained hypothesis and the tail probability of the F-statistic (in parentheses).Model 1 is the general model, containing four lags of the first differences of each i variable in the cointegration analysis, four lags of DEPR, the error-correction term from money demand, and a constant term. Model 2 is Model 1, excluding the fourth lag of each variable except the treasury bill mte, A(TBlLL*D1)u 4, and real money balances, A(m’P),.4. Model; i is Model 2, excluding the third lag of each variable except real output, Ay Model 4 is Model 3, excluding the second lag of each variable except currency depreciation, DEPRt.i . Model 5 is Model 4, excluding the first lag of each
Notes: The first three columns report the model number, the number of unrestricted parameters, k, and the Schwarz criterion (SC). The two entries within a given block of numbers in the last four columns are the F-statistic for testing the null hypothesis against the maintained hypothesis and the tail probability of the F-statistic (in parentheses).Model 1 is the general model, containing four lags of the first differences of each i variable in the cointegration analysis, four lags of DEPR, the error-correction term from money demand, and a constant term. Model 2 is Model 1, excluding the fourth lag of each variable except the treasury bill mte, A(TBlLL*D1)u 4, and real money balances, A(m’P),.4. Model; i is Model 2, excluding the third lag of each variable except real output, Ay Model 4 is Model 3, excluding the second lag of each variable except currency depreciation, DEPRt.i . Model 5 is Model 4, excluding the first lag of each

The general model is then reduced by removing the longest lag of each variable with low t-values, and using F-tests and the Schwarz criterion to check the validity of the reduced model. The F-statistics generated in the simplification process are reported above. None of the F-statistics comparing the initial, intermediate, and final models are significant, and the Schwarz criteria become more and more negative with each simplification. Hence, our parsimonious model 5 seems statistically valid.

59. Parameter estimates and results for the preferred parsimonious specification are reported in the table below. The coefficient on the error-correction term from the long-run money demand equation, which is significantly different from zero at the 99 percent confidence level, implies that approximately one-seventh of any deviation from long-run monetary equilibrium is adjusted by a movement in real money balances within one quarter, that is, the half-life of such a shock is roughly five quarters.

60. The sign of the coefficients of lagged changes in output, Ay t-3, is positive and significant as expected, implying that the elasticity of real money balances with respect to increases in real output is almost 75 percent in the short run. The sign of lagged currency depreciation, DEPRt-2, is negative as expected, and implies that a 1 percent currency depreciation would lead to a 1.2 percent decrease in the demand for real money balances.31 Likewise, the sign of the coefficient of lagged changes in treasury bill rates, A(TBILL*D1) t-4, is negative as expected, and a 1 percent increase in the treasury bill rate would lead to a 2.3 percent decrease in the demand for real money balances.32 The estimated coefficient on lagged changes in real money balances is broadly consistent with the coefficient on the error-correction term, implying that over 40 percent of the increase in real money balances continues to persist after four quarters.

Parsimonious Error-Correction Model
Explanatory VariableCoefficientStandard Errort-Value
ecmt_1-0.1320.032-4.146**
Δ(m-p)t-40.4390.0716.170**
Δyt-30.7460.2782.687**
DEPRt-2-0.0040.0015.509**
Δ(TBILL*Dl)t-4-0.0080.003-2.585**
Constant0.0130.0062.176*
R20.477
S.E. of the regression0.035
Durbin-Watson1.786
F-statistic18.497**
Notes: Dependent variable is Δ(m-p)t
Notes: Dependent variable is Δ(m-p)t

61. Misspecification and diagnostic tests of the restricted model, including tests for normality of the residuals, autoregressive conditional heteroscedasticity, and heteroscedastic errors, do not indicate specification problems.33 Recursive estimates from 1983 to 2001 suggest the model is stable. The one-step residuals lie within 2 standard errors except at one point, in 1986, when there was a sharp drop in inflation (see figure below).

Figure 1.Stability Tests of the Parsimonious

Money Demand Equation

E. Conclusion

62. The analysis in this study indicates that there exists a stable money demand relationship in Mauritius among real demand, real output, domestic and foreign interest rates, and domestic inflation. Estimates are provided about the long-run response of money demand to changes in real output, domestic treasury bill and time deposit interest rates, inflation, and foreign interest rates, in Mauritius. Over the long run. money demand is found to be positively related to output and time deposit interest rates, and negatively related to inflation, treasury bill interest rates, and foreign interest rates. In the short run, about 13 percent of the disequilibrium in the money market is absorbed, in making the adjustment of real money balances fairly slow. Currency depreciation and increases in the treasury bill rate have a strong negative impact on real money demand.

63. The behavior of money demand “and in particular, the error-correction mechanism” is a key building block in the modeling of inflation. The introduction of a formal inflation-targeting framework would require strengthening the analysis of the linkages between, on the one side, money supply, exchange rates, and interest rates, and, on the other side, inflation and economic activity, in order to generate a reliable inflation forecast. The IMF staff is carrying on its work in this area, in the context of the ongoing dialogue with the authorities on further improving the conduct of monetary policy.

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STATISTICAL APPENDIX
Table 1.Mauritius: GDP Real Growth Rates by Industrial Origin, 1997-2001(Annual change in percent)
19971998199920002001
Rev.Est.Prov.
Agriculture, forestry, hunting and fishing3.5-1.5-25.828.18.1
Sugarcane growing5.02.5-43.952.514.2
Other agriculture1.4-7.13.19.42.0
Mining and quarrying3.03.03.03.03.0
Manufacturing5.96.22.07.66.3
Sugar milling10.02.5-45.052.514.2
Export processing zone6.06.96.06.06.0
Other Manufacturing5.25.95.17.06.0
Electricity, gas, and water10.011.72.521.413.0
Construction-0.96.08.57.53.5
Wholesale and retail trade and other retail service5.04.65.13.23.7
Wholesale and retail trade5.04.55.03.03.5
Other retail service5.08.07.78.08.0
Hotels and restaurants10.26.04.013.53.5
Transport, storage and communications9.011.77.410.09.2
Financial intermedation8.28.310.314.715.1
Insurance8.56.56.05.55.5
Banking and other (including offshore)8.09.212.218.518.5
Real estate, renting, and business activities5.35.66.26.66.9
Ownership of dwellings2.83.23.23.13.1
Other8.78.59.710.310.8
public administration, defense, and social security3.43.63.66.04.5
Education6.06.06.46.47.4
Health and social work4.06.07.83.54.0
Other services8.06.57.05.06.0
imputed bank service charges8.09.212.218.518.5
GDP at factor cost5.75.82.28.66.3
Net indirect taxes7.27.96.03.90.7
GDP at market prices5.86.12.78.05.6
Source: Central Statistics Office, National Accounts of Mauritius
Source: Central Statistics Office, National Accounts of Mauritius
Table 2Mauritius: GDP at Current Prices by Industrial origin, 1997-2001(In millions of Mauritian rupees)
19971998199920002001
Rev.Est.Prov.
Agriculture, forestry, hunting and fishing7,2177,8885,6136,8707,505
Sugarcane growing4,1784,8422.4333.4683.970
Other agriculture3,0383,0463,1803,4023,535
Mining and quarrying118125134142150
Manufacturing18,33921,04422,43224,64027,190
Sugar milling1,2471,475546779890
Export processing zone9,18810,51011,69712,52313,800
Other Manufacturing7,9059,05910,18911,335812,500
Electricity, gas, and water1,5161,4851,3341,7212,185
Construction4,5204.9825.6206.2256.640
Wholesale and retail trade and other retail service10.33111.33012.31212.94013.950
Wholesale and retail trade9.98210.92511.84212.40013.350
Other retail service349405470540600
Hotels and restaurants4,0114,8615,6305,8796,720
Transport, storage and comunications8,92710,24111,61913,30715,395
Financial intermidation5,2096,5367,6039,36011,500
Insurance1,7902,0302,2202,4602750
Banking and other (including offshore)3,4194,5065,3876,9008,750
Real estate, renting, and bussiness activities6,8547,5078,4319,38510,505
Ownership of dwellings3,7794,0604,3584,6725,010
Other3,0763,4474,0734,7135,495
public administration, defense, and social security5,2255,7926,4026,9657,440
Education3,2863,7904,3004,7095,210
Health and social work2,1042,3782,7652,9463,150
Other services2,8593,3183,7234,1344,660
inputed bank service charges-2,605-3,496-4,668-5,559-6,400
GDP at factor cost77,94287,78193,254103,664115,800
Sugar5,4266,3172,9794,2474,860
Nonsugar72,51681,46490,27599,417110,940
Net indirect taxes10,41612,10914,11614,81415,665
GDP at market prices88,35899,890107,370118,478131,465
Source: Central Statistics Office, National Accounts of Mauritius
Source: Central Statistics Office, National Accounts of Mauritius
Table 3Mauritius: Real Growth Rates of Expenditure on GDP,1997-2001(Annual change in percent)
19971998199920002001
Rev. Est.Prov.
Consumption4.65.74.23.94.3
Private4.86.23.93.53.9
Government3.83.55.66.26.0
Gross fixed capital formation11.6-6.722.1-8.24.1
Private1/32.5-9.125.3-11.5-2.5
Government-25.40.913.02.322.1
Exports3.58.31.44.06.9
Goods excluding Freeport activities, f.o.b.-0.14.0-3.70.19.4
Freeport activities, f.o.b.123.690.3-18.035.55.6
Nonfactor services5.38.813.96.33.6
Imports9.77.34.7-2.24.9
Goods excluding Freeport activities, f.o.b.6.82.89.3-7.52.8
Freeport activities, f.o.b.191.954.5-21.435.77.5
Nonfactor services10.014.8-3.18.89.8
GDP at market prices5.86.12.78.05.6
Sources: Central Statistics Office, National Accounts of Mauritius

Includes purchases of ships and/or aircraft in 1997, 1999, and 2001.

Sources: Central Statistics Office, National Accounts of Mauritius

Includes purchases of ships and/or aircraft in 1997, 1999, and 2001.

Table 4Mauritius: Expenditure on GDP at Current Prices, 1997-2001(In millions of Mauritian rupees)
19971998199920002001
Rev. Est.Prov.
Consumption66,56475,08482,90389,44798,255
Private55,05662,43668,71173,93881,455
Government11,50812,64814,19215,50916,800
Gross fixed capital formation23,48123,08229,67628,06930,280
Private1/17,84017,08322,54020,55220,770
Government5,6415,9997,1367,5179,510
Increase in stocks2,6172,556-1,4471,6342,045
Net exports-4,304-832-3,762-672885
Exports54,19465,71169,09973,84182,400
Goods, f.o.b.35,37743,71143,14045,70751,800
Nonfactor services18,81722,00025,95928,13430,600
Imports58,49866,54372,86173,84182,400
Goods, f.o.b.44,67849,31655,49854,48358,415
Nonfactor services13,82017,22717,36320,03023,100
GDP at market prices88,35899,890107,370118,478131,465
Memorandum items:
Domestic savings21,79424,80624,46729,03133,210
Domestic investment26,09825,63828,22929,70332,325
Resources gap4,3048323,762672-885
Sources: Central Statistics Office, National Accounts of Mauritius

Includes purchases of ships and/or aircraft in 1997, 1999, and 2001,

Sources: Central Statistics Office, National Accounts of Mauritius

Includes purchases of ships and/or aircraft in 1997, 1999, and 2001,

Table 5Mauritius: Real Growth Rates of Gross Domestic Fixed Capital Formation, 1997-2001(Annual change in percent)
19971998199920002001
Rev.EstProv.
By type of capital goods-11.6-6.722.1-8.24.1
Residential building9.05.03.37.30.5
Nonresidential building9.00.425.911.23.9
Other construction and works-12.411.3-4.86.07.3
Transport equipment
Passenger cars-20.27.8-2.7-2.5-2.1
Other equipment1/-291.4-69.2191.0-65.1108.5
Machinery and other equipment5.411.017.9-8.1-9.1
By industrial sector-11.6-6.722.1-S.24.1
Agriculture, forestry, hunting, and fishing3.510.94.1-22.2-8.8
Manufacturing1.324.05.60.0-5.7
Of which: export processing zone28.68.213.0-5.8-9.3
Electricity, gas and water-28.042.911.7-28.8-4.9
Construction10.11.8-4.28.0-10.6
Wholesale and retail trade-7.42.09.713.73.3
Restaurants and hotels-1.817.264.1-0.2-18.3
Transport, storage, and communications1/95.7-46.186.0-39.932.9
Financial intermediation-35.533.5-6.9-16.05.0
Real estate, renting, and business activities-7.48.04.48.4-2.4
Ownership of dwellings9.05.03.37.30.5
Other15.239.612.915.9-21.9
Public administration, defense, and compulsory social security20.0-38.136.6-3.77.1
Education17.8-33.3-16.69.7144.0
Health and social work34.1-4.6-28.345.8-4.7
Other services11.13.9-31.9147.4-5.9
Sources: Central Statistics Office, National Accounts of Mauritius

Includes purchases of ships and/or aircraft in 1997, 1999, and 2001

Sources: Central Statistics Office, National Accounts of Mauritius

Includes purchases of ships and/or aircraft in 1997, 1999, and 2001

Table 6Mauritius: Composition of Grass Domestic fixed Capital Formation at Current Prices, 1997-2001
19971998199920002001
Rev. Est.Prov.
(In millions of Mauritian rupees)
By type of capita] goods23,48123,08229,67628,06930,280
Residential building4,6505,0805,4606,0356,250
Nonresidential building3,7063,8705,0665,8026,210
Other construction and works2,6613,0803,0503,3303,680
Transport equipment5,4702,6655,4172,7924,540
Passenger ears1,1551,2951,3101,3161,340
Other equipment1/4,3151,3704,1071,4763,200
Machinery and other equipment6,9948,38710,68310,1109,600
By industrial sector23,46123,08229,67628,06930,280
Agriculture, forestry, hunting and fishing678790864692655
Manufacturing2,8943,8324,3324,4644,390
Of which: export processing zone1,2451,4451,7551,7021,610
Electricity, gat and water1,4502,2022,6161,9181,890
Construction490533545606565
Wholesale and retail trade1,5721,6811,9322,2632,420
Restaurants and hotels1,3381,6462,8372,9152,460
Transport, storage, and communications1/6,5753,7457,3214,5336,265
Financial intermediation445635629544595
Real estate, renting, and business activities5,0895,7236,2196,9416,985
Ownership of dwellings4,6505,0805,4606,0356,2S0
Other439643759906735
Public administration, defense, and compulsory social security1,3919011,2881,2781,415
Education7134994404971,255
Health and sock work303307235353350
Other services5435884181,0651.038
(In percent of total)
By type of capital goods100.0100.0100.0100.0100.0
Residential building19.822.018.421.520.6
Nonresidential building15.816.E17.120.720.5
Other construction and works11.313.310.311.912.2
Transport equipment23.3n.s18.39.915.0
Passenger cars4.9S.64.44.74.4
Other equipment1/18.45.913.85.310.6
Machinery and other equipment29.836.336.036.031.7
By industrial sector100.0100.0100.0100.0100.0
Agriculture, forestry, hunting, and fishing2.93.42.92.52.2
Manufacturing12.316.614.615.914.5
Of which: export processing zone5.36.35.96.15.3
Electricity, gas and water6.29.58.86.86.2
Construction2.12.31.82.21.9
Wholesale and retail trade6.77.36.58.18.0
Restaurants and hotels5.77.19.610.48.1
Transport, storage, and communications1/28.016.224.716.120.7
Financial intermediation1.92.82.11.92.0
Real estate, renting end business activities21.724.821.024.723.1
Ownership of dwelling*19.822.01S.421.520.6
Other1.92.82.63.22.4
Public administration, defense, and cumpulsory social security5.93.94.34.64.7
Education3.02.21.51.84.1
Health and social work1.31.30.81.31.2
Other services2.32.51.43.83.4
Source: Central Statistics Office, National Accounts of Mauritius

Includes purchase of ships and/or aircraft in 1997, 1999, and 2001.

Source: Central Statistics Office, National Accounts of Mauritius

Includes purchase of ships and/or aircraft in 1997, 1999, and 2001.

Table 7Mauritius: Sugar Cultivation, Yields, and Output, 1997-: 2001

(Area in thousands of arpents; yields in metric tons per arpent harvested; and production, accruals, and consumption in thousands of metric tons)1/

19971998199920002001
Rev. EstProv.
Area under cultivation185.6184.8187.1182.3
Miller-planters2/102.296.986.691.9
Planters83.487.9100.590.4..
Area harvested3/172.4175.3171.7173.1
Miller-pknlers2/91.988.478.785.0
Planters80.586.993.088.1
Percent harvested92.994.991.895.0
Miller-planters2/89.991.290.992.5
Planters96.598.992.597.5
Cane yield33.633.022.629.5
Miller-planters2/36.536.428.033.9
Planters30.129.018.125.3
Cane production5,787.05,781.03,882.05,109.0
Miller-plasters2/3,354.03,221.02,203.02,878.0
Planters2,433.02,560.01,679.02,231.0
Commercial sugar recovered (percent of cane)10.7310.889.6211.14
Sugar yield3.603.592.173.29
Sugar production621.0629.0373.4569.3645.0
White5.04.02.43.15.0
Raw616.0625.0371.0566.2640.0
Sugar accruals4/621.0629.0373.0569.3
Planters194.0195.0
Miller-planters5/280.O284.0
Millers147.0150.090.0
Molasses production165.8168.5124.7144.0
Memorandum items:
Sugar production by fiscal year5/6/590.0620.0619.1373.3570.0
Of which: local consumption5/7/3.04.04.04.04.0
Sources: Mauritius Chamber of Agriculture; Central Statistics Office; and IMP staff estimates

One arpent = 1.043 acres, or 0.4221 hectare

Mills and estates, including legally separate companies under same ownership.

Difference from area cultivated is attributable mainly to replanting and rotational/fallow periods

Reflects millers’ 26 percent share of sugar produced as compensation for milling, as adjusted for mill efficiency.

Fiscal-year data relate to 12-month period ending in June of current year.

Total crop from harvest beginning approximately one month before the start of the fiscal year indicated, less the output in June immediately before the indicated fiscal year, plus the June output of the next crop, most of which is produced in the next fiscal year

During 1996/97, 38,000 tons of sugar were imported for local consumption. Imports for the 1997/98 period are estimated at 33,000 tons.

Sources: Mauritius Chamber of Agriculture; Central Statistics Office; and IMP staff estimates

One arpent = 1.043 acres, or 0.4221 hectare

Mills and estates, including legally separate companies under same ownership.

Difference from area cultivated is attributable mainly to replanting and rotational/fallow periods

Reflects millers’ 26 percent share of sugar produced as compensation for milling, as adjusted for mill efficiency.

Fiscal-year data relate to 12-month period ending in June of current year.

Total crop from harvest beginning approximately one month before the start of the fiscal year indicated, less the output in June immediately before the indicated fiscal year, plus the June output of the next crop, most of which is produced in the next fiscal year

During 1996/97, 38,000 tons of sugar were imported for local consumption. Imports for the 1997/98 period are estimated at 33,000 tons.

Table 8Mauritius: Sugar Exports, 1996/97-2000/011/
1996/971997/981998/991999/002000/01
Rev. Est.Prov.
(In thousands of metric tons)
Volume shipped586.4606.0628.5378.5565.0
European Union511.5511.8524.8368.8540.0
United States24.522.918.56.05.0
World market5.25.44.53.76.0
Special Preferential Sugar Agreement2/45.265.980.70.014.0
(Mauritian rupees per metric ton)
Unit value13,66513,34814,69114,26712,844
European Union14,08213,87515,16614,82412,900
United States2492402359788
World market4147413558
Special Preferential Sugar Agreement2/5207019980145
(In millions of Mauritian rupees)
Value, f.o.b.8,0138,0899,2335,4007,257
European Union7,2037,1017,9595,2686,966
United States2492402359788
World market4147413558
Special Preferential Sugar Agreement2/5207019980145
(U.S. dollars per metric ton)
Unit value715.5590.8-591.9559.2465.5
European Union737.4614.1611.1559.9467.6
United States532.2463.8511.8633.7637.9
World market412.8385.2367.1370.8350.4
Special Preferential Sugar Agreement2/602.4470.8498.3375.4
(In millions of U.S. dollars)
Value, f.o.b.419.6358.0372.0211.7263.0
European Union377.2314.3320.7206.5252.5
United States13.010.69.53.83.2
World market2.12.11.71.42.1
Special Preferential Sugar Agreement2/27.231.040.25.3
(Mauritian rupees per U.S.dollars)
Conversion factor19.09822.59524.81925.51227.591
Sources: Mauritius Sugar Syndicate (MSS);and Bank of Mauritius.

Fiscal year from July to June. Data differ somewhat from those presented by the MSS on a crop-year basis, which refer to disposal of a given year’s crop (from June when harvest starts to the following June).

The Special Preferential Sugar Agreement was signed on June 1, 1995 between Atlantic, Caribbean, and Pacific (ACP) sugar-supplying countries and the European Union to compensate for the European cane refiners’ deficit for a period of six years, to 2001. It provides Mauritius with the right to export available tonnage of approximately 80,000 tons of sugar.

Sources: Mauritius Sugar Syndicate (MSS);and Bank of Mauritius.

Fiscal year from July to June. Data differ somewhat from those presented by the MSS on a crop-year basis, which refer to disposal of a given year’s crop (from June when harvest starts to the following June).

The Special Preferential Sugar Agreement was signed on June 1, 1995 between Atlantic, Caribbean, and Pacific (ACP) sugar-supplying countries and the European Union to compensate for the European cane refiners’ deficit for a period of six years, to 2001. It provides Mauritius with the right to export available tonnage of approximately 80,000 tons of sugar.

Table 9Mauritius: Ex-Syndicate sugar Prices, 1996/97-2000/011/(Mauritian rupees per ton)
1996/971997/981998/991999/002000/01
Rev. Est.Prov.
Average sugar prices (ex-millers)12,31911,90713,25012,37411,400
Average price, after taxes and crop insurance premiums11,12410,84612,06412,37411,400
Memorandum items:
Average insurance premiums1,1951,0611,1661,797
Bagasse proceeds2/596466120
Sources: Mauritius Sugar Syndicate

Marketing years.

Paid to planters but not to millers

Sources: Mauritius Sugar Syndicate

Marketing years.

Paid to planters but not to millers

Table 10Mauritius: Revenue and Expenditure of Sugar Estates with Factories,1/1997-20012/(concluded)(In millions of Mauritian rupees, unless otherwise indicated)
19971998199920002001
Rev. Est.Prov.
Production and prices(Production in thousands of metric tons; and prices in Mauritian rupees per metric ton)
Sugar output (at 98.5 polarization)
National total621629374571646
Estates with factories427431266397446
Sugar price, ex-syndicate3/11,94413,25412,46011,57512,740
Molasses output
National total167169127144174
Estates with factories99997985106
Molasses price597230145436800
(In millions of Mauritian rupees)
Revenue5,5506,2344,9915,1686,101
Sugar3/5,0965,7093,2914,5955,682
Molasses5923123785
Electricity, white sugar, and by-products195266186367252
Crop insurance compensation2002361,50216982
Operating expenditure5,0355,3844,9745,3685,772
Wages and salaries2,6392,8532,6223,1253,333
Agricultural workers1,3831,4841,3671,6251,733
Nonagricultural workers744799690875933
Administrative staff512571565625667
Supplies and other charges1,9582,0481,9141,8481,995
Supplies864922759831899
Interest254246371222239
Other charges840881784795858
Crop insurance premium and levy438483438395444
Operating surplus/deficit (-)51585017-2O0329
Depreciation per accounts (-)-449-488-492-538-568
Profit/loss (-) on sugar66362-475-738-239
Net nonsugar income4/5879341,1041,0281,031
Receipts9481,3001,3291,3451,375
Payments (-)-361-366-225-317-344
Overall profit/loss (-)6531,296629290792
(In millions of Mauritian rupees, unless otherwise indicated)
Transfer to modernization and agricultural diversification reserve5/-3-175
Special levy6/00
Memorandum items:
Income taxes .470
Depreciation7/709712
Excess over accounts260252
Additions to fixed assets8/1,038
Sources: Mauritius Chamber of Agriculture; Mauritius Sugar Authority; and IMF staff estimates

Based on companies’ audited accounts, in which accounting practices vary somewhat, supplemented by questionnaire returns.

Accounting-year basis. Mainly calendar years, except Illovo and Mon Tresor (April-March) and St, Antoin (July-June). Revenues include receipts (partly estimated) from current year’s crop through following June 30.

Less Mauritius Sugar Syndicate marketing expenses and cesses; before export taxes and insurance premuliums. Reflects actual final price, whereas company accounts are closed using an estimate.

Income on other crops and nonagricultural activities.

Producers are requested to credit in diversification reserve for each of the years 1994-2003. Transfers from this reserve are allowed on approved investments.

The Finance Act of 1996 placed a special levy on the 1996 sugar companies’ accounts. The Finance Act of 1997replaced this by a special contribution.

At estimated “full-replacement value” (estimated current cost of completely new factory of average capacity times the number of factories operating over life of 24 years).

Excluding power station at the Flacq United Estates, Ltd. (FUEL) sugar mill.

Sources: Mauritius Chamber of Agriculture; Mauritius Sugar Authority; and IMF staff estimates

Based on companies’ audited accounts, in which accounting practices vary somewhat, supplemented by questionnaire returns.

Accounting-year basis. Mainly calendar years, except Illovo and Mon Tresor (April-March) and St, Antoin (July-June). Revenues include receipts (partly estimated) from current year’s crop through following June 30.

Less Mauritius Sugar Syndicate marketing expenses and cesses; before export taxes and insurance premuliums. Reflects actual final price, whereas company accounts are closed using an estimate.

Income on other crops and nonagricultural activities.

Producers are requested to credit in diversification reserve for each of the years 1994-2003. Transfers from this reserve are allowed on approved investments.

The Finance Act of 1996 placed a special levy on the 1996 sugar companies’ accounts. The Finance Act of 1997replaced this by a special contribution.

At estimated “full-replacement value” (estimated current cost of completely new factory of average capacity times the number of factories operating over life of 24 years).

Excluding power station at the Flacq United Estates, Ltd. (FUEL) sugar mill.

Table 11Mauritius: Nonsugar Agricultural Production, 1997-2001(In thousands of metric tons, unless otherwise indicated)
19971998199920002001
Rev. Est.Prov.
Tea
Area harvested (in thousands of arpents)1/1.81.61.61.61.6
Production10.78.88.57.68.9
Green leaf processed8.97.37.06.37.4
Manufactured tea1.81.51.51.31.5
Green leaf yields (tons per hectare)11.810.810.69.511.3
Food crops
Area harvested (in thousands of arpents)1/16.416.614.317.418.9
Production101.391.685.7114.5133.5
Potatoes18.215.115.714.518.8
Irish17.614.615.313.818.3
Sweet0.50.50.40.70.5
Tomatoes12.210.78.09.711.7
Eggplant (brinjal)2.12.21.72.22.7
Bananas9.69.37.68.510.1
Pineapples1.61.51.03.46.0
Groundnuts0.90.60.30.40.3
Maize2/0.20.30.20.60.4
Manioc0.20.20.10.20.2
Ginger0.30.40.10.50.9
Other3/56.151.351.074.582.4
Sources: Mauritius Chamber of Agriculture; and Ministry of Agriculture. Food Technology, and Natural Resources.

One arpent = 1.043 acres, or 0.4221 hectare.

Includes maize that is sent to drying stations; does not include fodder.

Includes beans and peas, eddoes (arouille), creepers (cucumber and squash), and mixed vegetables (beets, cabbage, carrots, cauliflower, chilies, garlic, onions, and lettuce).

Sources: Mauritius Chamber of Agriculture; and Ministry of Agriculture. Food Technology, and Natural Resources.

One arpent = 1.043 acres, or 0.4221 hectare.

Includes maize that is sent to drying stations; does not include fodder.

Includes beans and peas, eddoes (arouille), creepers (cucumber and squash), and mixed vegetables (beets, cabbage, carrots, cauliflower, chilies, garlic, onions, and lettuce).

Table 12Mauritius: Export Processing Zone (EPZ) Activity, 1997-2001
19971998199920002001
Rev.Est.Prov.
(Numbers)
Total firms1/480495512523522
Textiles269275285287287
Other211220227236235
Total employees1/83,39190,11691,37489,86990,894
Textiles73,36479,64080,96079,31180,162
Other10,02710,47610,41410,55810,732
(In millions of Mauritian rupees)
EPZ investments1,2451,4451,7551,7021,610
Plant and machinery1,2001,3551,6351,5571,410
Buildings4590120145200
EPZ value added
Current factor cost9,08610,51011,69712,52313,740
Factor cost at constant 1992 prices6,5947,0507,4747,9228,437
Source: Central Statistics Office, Digest of Industrial Statistics.

As at December

Source: Central Statistics Office, Digest of Industrial Statistics.

As at December

Table 13Mauritius: Electricity Production and Consumption, 1997-2001
19971998199920002001
Rev.Estprov.
(In megawatts)
Plant effective capacity370.0396.7425.7497.9513.9
(In percent of total)
Hydroelectric effective capacity14.713.712.810.930.9
Of which: purchases1/0.30.10.10.10.1
Thermal effective capacity85.386.387.289.189.1
Of which: purchases 11/14.322.721.227.227.2
(In millions of kilowatt-hours)
Energy generated1,251.81,364.81,422.61,564.91,657.1
Hydroelectric92.4104.229.695.370.4
Thermal1,159.31,260.61,393.01,469.61,586.6
Energy purchased from sugar and of lier factories148.3256.0343.8601.2710.2
Energy sold1,075.11,176.41,229.31,358.51,450.0
(Annual growth in percent, unless otherwise indicated)
Energy generated22.59.04.210.05.9
Energy purchased from sugar and other factories15.072.634.374.918.1
Energy sold9.19.44.510.56.7
Consumers at year’s end (numbers)284,576293,887304,029313,963321,000
Of which: domestic (percent of total)89.189.189.289.189.6
Annual percentage increase of consumers3.03.33.53.32.2
Average selling prices (Mauritian cents per kilowatt-hour220.0214.0211.0230.0276.0
(In millions of Mauritian rupees, unless otherwise indicated)
Central Electricity Board indicators
Revenue2,414.32,564.12,659.03,185.74,156.0
Current expenditure2,418.43,533.22,839.53,469.640,040.0
Persons employed (number)1,8281,8161,8541,8361,807
Sources: Central Statistics Office; and Central Electricity Board (CEB)

From sugar mills and of lier factories generating electricity.

Sources: Central Statistics Office; and Central Electricity Board (CEB)

From sugar mills and of lier factories generating electricity.

Table 14Mauritius: Building Permits Issued, 1996-20001/
19961997199819992000
Rev. Est.
Permits issued(Numbers)
Total8,3377,6088,7718,8178,867
By building type
Residential7,8027,0978,3028,2808,331
New buildings4,6894,0114,6674,6574,538
Additions3,1133,0863,6353,6233,793
Nonresidential535511469537536
By location
Urban4,3654,0714,5164,4373,856
Rural3,9723,5374,2554,3805,011
Floor area(Thousands of square meters)
Total1,4471,2171,4801,5461,510
By building type
Residential1,1089971,2041,2441,170
New buildings804714839865785
Additions304283365379385
Nonresidential339220276302340
By location
Urban812671716731592
Rural635546764815918
Central Statistics Office

Includes new buildings and additions for which permits have been issued by municipalities and the central government.

Central Statistics Office

Includes new buildings and additions for which permits have been issued by municipalities and the central government.

Table 15Tourist Arrivals, Capacity, and Earnings, 1997-2001
19971998199920002001
prov.
Arrivals by country of residence(Persons)
Africa158,493156,864150,366157,150161,977
Kenya1,2301,6841,6551,8011,734
Madagascar10,1439,2137,8807,0576,674
Reunion (France)82,62883,96683,74986,94591,140
Seychelles8,9958,5297,8939,22910,687
South Africa51,24949,67646,58348,68347,882
Zimbabwe4,2483,7962,6063,4353,860
Europe294,710320,057341,862396,251392,517
Belgium8,1628,3659,58610,99810,398
France145,173162,775175,431198,423197,595
Germany43,99343,82645,20652,86950,866
Italy35,25536,61436,67539,00037,343
Switzerland16,10516,17816,28120,47318,427
United Kingdom46,02252,29958,68374,48877,888
Other82,43580,85185,536103,052105,824
Australia9,4608,9138,0768,7718,790
India13,22012,62913,58317,24118,890
Japan3,1402,5052,3242,3891,589
Singapore3,4043,5153,6614,1043,431
United States2,8793,1583,7453,7043,923
Other50,38250,13154,54766,84369,201
All countries536,125558,195578,085656,453660,318
Tourism capacity, activity, and earnings(Numbers, unless otherwise indicated)
Hotels8790929595
Rooms6,8097,2678,2558,6578,640
Beds14,12614,99516,94717,77617,718
Nights spent (thousands)5,4515,5685,7296,4136,520
Average stay (nights)1010101010
Gross earnings
In millions of Mauritian rupees10,07011,89013,66814,23418,166
In millions of U.S. dollars478496543542624
Average earnings per tourist
In Mauritian rupees18,78321,30123,64421,68327,511
In U.S. dollars892888939826944
Source: Central Statistics Office.
Source: Central Statistics Office.
Table 16Estimated Labor Force and Employment, 1997-20011/
19971998199920002001
Rev. EstRev. Est
(In thousands of persons)
Population aged 12+years2/898911925.9937.6951.2
Female454461469.1475.7482.8
Male445450456.8461.9468.4
Labor force499.4509.4519.5528.6538.5
Female166.0171.9177.1181.4186.4
Mauritian161.1165.6168.6171.8175.7
Foreign4.96.38.59.610.7
Male333.4337.5342.4347.2352.1
Mauritian329.7333.8338.0342.2346.3
Foreign3.73.74.45.05.8
Employment3/467.2475.0480.5483.6490.3
Large establishments4/287.8294.7297.4297.7300.5
Of which: foreign8.610.012.914.616.5
Female103.5108.3109.7110.5112.5
Male184.3186.4187.7187.2188.0
Other firms and self179.4180.3183.1185.9189.8
Female48.849.652.254.456.2
Male130.6130.7130.9131.5. 133.6
Employment in large establishments by economic activity4/5/2S6.1292.8297.7297.0301.2
Agriculture, forestry, and fishing34.332.731.3
Of which: sugar25.924.823.5
Mining and quarrying0.20.20.2
Manufacturing115.6115.0117.0
Of which: sugar3.93.43.2
Of which: EPZ6/88.988.290.8
Electricity, gas, and water3.13.03.0
Construction13.613.513.3
Wholesale and retail trade16.416.516.5
Hotels and restaurants13.014.516.3
Transport, storage, and communications16.416.116.6
Financial intermediation6.66.77.1
Real estate, renting, and business activities..8.38.98.9
Public administration and defense34.834.935.7
Education17.917.818.3
Health and social work11.411.311.0
Other community, social, and personal service6.26.06.2
Unemployment32.234.439.045.04B.2
Female13.714.015.216.517.7
Male18.520.423.828.530.5
(In percent)
Labor force participation rate54.654.854.754.8S4.9
Female35.536.035.936.136.4
Male74.274.274.074.173.9
Unemployment rate6.66.97.78.89.2
Female8.58.59.09.610.1
Male5.66.17.08.38.8
Employment growth rate1.01.71.20.61.4
Female2.83.72.51.92.3
Male0.20.70.50.00.9
Source: Central Statistics Office, Survey of Employment and Earnings and Digest of Labour Statistics.

Data are for the islands of Mauritius and Rodrigues 2000 2001 figures for unemployment and for employment outside large establishments are provisional and are based on the 2000 Population Census. For 1997-1999 these figures are based on the 1995 Labor Force Sample Survey.

Exclude foreigners.

Average of March and September survey results.

covers large establishments, i.e. nonagricultural establishments with ten or more employees, all government, sugar plantations of tea hectares or more, tea plantations of two bectares or more, all flue-cured tobacco, and other agricultural units with ten or more employees; excludes self-employed, piece-rate employees working at home, and unpaid family workers. Because of variations in response rates and coverage, some short-term functuations are not significant.

At March of each year.

Excludes nonmanufacturing EPZ establishments.

Based on Mauritian labor force.

Source: Central Statistics Office, Survey of Employment and Earnings and Digest of Labour Statistics.

Data are for the islands of Mauritius and Rodrigues 2000 2001 figures for unemployment and for employment outside large establishments are provisional and are based on the 2000 Population Census. For 1997-1999 these figures are based on the 1995 Labor Force Sample Survey.

Exclude foreigners.

Average of March and September survey results.

covers large establishments, i.e. nonagricultural establishments with ten or more employees, all government, sugar plantations of tea hectares or more, tea plantations of two bectares or more, all flue-cured tobacco, and other agricultural units with ten or more employees; excludes self-employed, piece-rate employees working at home, and unpaid family workers. Because of variations in response rates and coverage, some short-term functuations are not significant.

At March of each year.

Excludes nonmanufacturing EPZ establishments.

Based on Mauritian labor force.

Table 17Mauritius: Average Earnings by Sector Monthly Paid Employees,1997-20011/(Mauritian rupees per employee per month)
19971998199920002001
March
Agriculture, forestry, and fishing6,1466,8187,910
Of which: sugar5,6256,2247,116
Mining and quarrying10,90511,42712,822
Manufacturing7,1057,7038,127
Of which: export processing zone (EPz)6,4236,9447,194
Electricity, gas, and water12,15713,56915,696
Construction8,88410,23210,278
Wholesale and retail trade9,0989,78711,035
Hotels and restaurants7,0997,4377,819
Transport, storage, and communications10,50812,02112,508
Financial intermediation13,51514,81416,538
Real estate, renting, and business activities9,93711,32112,301
Public administration and defense9,60810,20810,684
Education10,60811,25611,235
Health and social work10,13711,29012,396
Other community, social, and personal service8,2878,3648,683
Total, large establishments7,5728,0808,7779,57910,236
Of which: EPZ5,7876,3958,7779,57910,236
Memorandum items:
Daily paid employees2/4,3164,6284,8105,1745,460
Of which: EPZ2/3,5623,7703,9264,1344,498
Source: Central Statistics Office, Survey of Employment and Earnings.

Covers large establishments. Data are based on the 2000 Population Census. Employees paid monthly account for approximately two-thirds of such employment and four-fifths of earnings reported, Some short-term fluctuations are not significant due to varying response races.

Daily earnings converted to a monthly basis by assuming 26 working days in a month.

Source: Central Statistics Office, Survey of Employment and Earnings.

Covers large establishments. Data are based on the 2000 Population Census. Employees paid monthly account for approximately two-thirds of such employment and four-fifths of earnings reported, Some short-term fluctuations are not significant due to varying response races.

Daily earnings converted to a monthly basis by assuming 26 working days in a month.

Table 18Mauritius: Labor Costs and Productivity,1996-20001/(Indices, 1982==100)
19961997199819992000
Rev. Est.Prov.
Labor cost (1)638.8697.1785.2859.9929.2
Real output (2)217.0229.3242.6248.0269.3
Employment (3)2/163.7167.4170.9173.1175.0
Consumer price index (4)259.1276.2295.0315.3328.6
Unit labor cost(5) = (1)/(2)294.4304.0323.6346.7345.0
Average real wage (6)=(1)/[(3)*(4)]3/150.6150.8155.7157.5161.5
Labor productivity(7)=(2)/(3)132.5137.0141.9.143.2153.8
Sources: Central Statistics Office, Digest of Productivity and Competitiveness Statistics.

Total economy

Number of persons

Covers the overall compensation of employees, including wages, salaries, overtime, bonuses, and contributions to pension funds.

Sources: Central Statistics Office, Digest of Productivity and Competitiveness Statistics.

Total economy

Number of persons

Covers the overall compensation of employees, including wages, salaries, overtime, bonuses, and contributions to pension funds.

Table 19Mauritius: Cost Structure and Prices of Petroleum Products, 1996/97-2000/011/(In percent of the sales price, unless otherwise specified)
1996/971997/981998/991999/002000/01
Premium gasoline
Import cost, c.i.f.31.327.625.149.437.0
Distribution costs and overheads2.11.91.93.65.6
Taxes67.458.755.2109.563.0
Profits (loss -)-0.811.8-5.7-62.5-5.7
STC sales price (Mauritian rupees per liter)10.611.816.610.516.6
Retail price (Mauritian rupees per liter)14.152/14.152/14.152/12.803/19.504/
Imports for inland trade (in metric tons)88,89987,02493,75490,10186,936
Diesel
Import cost, c.i.f.68.553.043.485.765.8
Distribution costs and overheads4.13.93.65.69.1
Taxes46.034.932.464.525.9
Profits (loss -)-18.68.220.6-55.8-0.8
STC sales price (Mauritian rupees per liter)5.46.05.85.09.3
Retail price (Mauritian rupees per liter)7.652/7.652/7.652/6.653/11.404/
Imports for inland trade (in metric tons)155,025139,393166,377178,503196,940
Kerosene
Import cost, c.i.f.92.268.162.1135.893.4
Distribution costs and overheads0.50.70.45.212.0
Taxes0.00.00.00.00.0
Profits (loss -)7.331.337.4-41.0-5.4
STC sales price (Mauritian rupees per liter)4.24.64.63.57.7
Retail price (Mauritian rupees per liter)5.652/5.652/5.652/4.553/8.754/
Imports for inland trade (in metric tons)88,19556,72854,11929,18613,159
Fuel oil
Import cost, c.i.f68.660.255.4103.4118.3
Distribution costs and overheads0.90.80.51.112.2
Taxes48.837.542.974.378.0
Profits (loss -)-18.31.41.2-78.7-108.4
STC sales price (Mauritian rupees per liter)3.33.73.73.73.7
Imports for inland trade (in metric tons)123,949125,410119,042121,18595,244
State Trading Corporation

Fiscal year from July to June. Cost structure relates to that of the State Trading Corporation (STC).

Effective December 21, 1996. From early June 1996 to December 21, 1996 the retail price per liter was MUR 11.30 for premium gasoline, MUR 6.10 for diesel, and MUR 4.50 for kerosene,

Effective June 15, 1999.

Effective September 30, 2000

Effective September 31, 2001

State Trading Corporation

Fiscal year from July to June. Cost structure relates to that of the State Trading Corporation (STC).

Effective December 21, 1996. From early June 1996 to December 21, 1996 the retail price per liter was MUR 11.30 for premium gasoline, MUR 6.10 for diesel, and MUR 4.50 for kerosene,

Effective June 15, 1999.

Effective September 30, 2000

Effective September 31, 2001

Table 20Mauritius: Consumer Price Indices by Major Commodity Groups, January 1999-December 2001(July 1996-June 1997=100)
WeightsJan.Feb.Mar.Apr.MayJuneJulyAug.Sep.Oct.Nov.Dec.Year (Avg.)
1999
Food and nonalcoholic beverages36.4115.6115.9115.8116.7117.1117.6117.0117.8117.8117.5112.2118.6117.1
Alcoholic beverages and tobacco8.7129.131.7131.7132.6133.1152.0152.5153.0153.0153.1153.1153.2144.0
Clothing and footwear7.9JjO.4110.5110.6110.8110.9110.9112.6112.91J3.3113.4113.4113.9112.0
Fuel and light4.4100.3100.3100.3100.3100.399.899.8100.4101.0101.0101.0101.0100.5
Housing and household operations13.2108.4108.4109.4109.5109.5109.4111.2111.31ll.5111.5111.4111.4110.2
Medical care and health expenses3.8113.9114.4114.6114.4114.7I15.I119.2119.2119.5120.6120.8[20,8117.3
Transport and communications14.2113.8113.2113.3113.3113.2111.1111.1111.8112.8113.2113.9117.5113.2
Recreation, entertainment, education, and cultural services6.0122.5122.612Z7122.7122.8122.8122.9122.9123.0122.8122.8122.9122.8
Miscellaneous goods and services5.4110.8111.1112.0113.8114.1115.5115.5116.0115.8115.8116.2116.3114.4
Total100.0114.6114.9115.1115.6115.8117.4117.711B.3118.5118.5118.9119.6117.1
Average for fiscal year ended June 30113.7
2000
Food and nonalcoholic beverages36.4118.6117.7118.2117.7118.2118.1118.1118.4113.9119.4119.8120.7118.6
Alcoholic beverages and tobacco8.7153.3153.3154.6154.5154.7154.3155.9159.1159.2159.2159.2159.2156.4
Clothing and footwear7.9114.2114.3114.3114.6114.5114.8114.8115.1115.5115.11S.6115.6114.9
Fuel and light4.4101.010L0101.0101.0101.OIOi.O101.0101.0101.0122.5121.9121.9106.3
Housing and household operations13.2112.6119.2119.6119.6119.7119.1120.0120.0120.0118.9118.9119.2118.9
Medical care and health expenses3.8122.5123.5123.8123.9122.5122.4123.2122.9122.7123.5123.6123.6123.2
Transport and communications14.2117.7117.5117.4117.3116.9117.3117.3117.3117.3129.0129.3129.7120.3
Recreation, entertainment, education, and cultural services6.0124.3124.4124.6124.6125.1125.0124.9124.8124.7124.7124.6124.6124.7
Miscellaneous goods and services5.4117.0118.5119.3119.7120.0120.0121.1121.1121.6121.9122.0122.1120.4
Total100.0120.0120.6121.0120.9121.0120.9121.3121.7121.9124.6124.8125.2122.0
Average for fiscal year ended June 30119.7
2001
Food and nonalcoholic beverages36.4120.9121.3120.8121.2121.6123.4124.0124.4124.6125.2126.3127.3123.4
Alcoholic beverages and tobacco8.7160.3161.3161.7161.7161.9166.6173.0173.4173.6174.0174.0176.0168.1
Clothing and footwear7.9115.6115.7115.7115.7115.7115.8116.8116.8116.8116.9117.1116.3
Fuel and light4.4121.9121.9121.9121.9121.9121.9121.9121.9121.9121.9123.8125.5122.4
Housing and household operations13.2119.3120.8121.1121.1121.3121.5123.0123.1123.2123.6123.8124.1122.2
Medical care and health expenses3.8124.6124.7125.0125.4126.2127.0127.4127.6127.9129.4129.6130.2127.1
Transport and communications14.2130.7130.6130.1130.5130.6130.1135.2135.5135.6136.1136.2136.3133.1
Recreation, entertainment, education, and cultural services6.0129.3131.6132.0132.1132.5132.5132.6132.6132.8132.8132.8132.8132.2
Miscellaneous goods and services5.4123.0123.1122.8122.5122.4122.1123.2123.5124.1124.1124.4124.6123.3
Total100.0125.9126.5126.3126.5126.8127.8129.7129.9130.1130.5131.1131.8128.6
Average for fiscal year ended June 30124.9
Sources: Central Statistics Office
Sources: Central Statistics Office
Table 21Mauritius: Summary of Government Finances, 1996/97-2000/011/
1996/971997/981996/991999/002000/01
Rev. Est.
(In millions of Mauritian, rupees)
Total revenue and grants16,47418,50121,32923,50022,707
Tax revenue14,00115,68617,90020,37320,189
Nontax revenue2,4102,5993,2942,9662,318
External grants63217135161199
Total expenditure and net lending22,63422,12524,85127,81029,846
Current expenditure17,63219,26421,84723,37926,786
Wages and salaries5,8976,5087,4577,7638,181
Other goods and services2,1321,9202,1802.3542,735
Interest payments2,8753,5033,6263,8565,527
External interest4735125014534C1
Domestic interest2,4022,9923,1253,4035,125
Current transfers and subsidies6,7297,3338,5849,40610,342
Capital expenditure and net lending2/5,0012,7612,1293,5482,325
Expenditure by the Privatization Fund0100875883735
Overall balance after grants-6,160-3,623-3,522-4,310-7,139
Financing6,1603,6233,5224,3107,139
External (net)198-275-1,170-510-3,184
Disbursements916531464410349
Amortization-718-805-1,634-920-3,932
Domestic5,2044,0054,1504,7123,623
Banking system (net)9881,631-1,5732,579-958
Nonbank4,2162,3745,7212,1334,581
Sale of equity in state-owned enterprises and residual3/758-1075431087,100
(Annual change in percent)
Total revenue and grants28.412.315.310.2-3.4
Total expenditure and net lending24.6-2.212.311.97.3
(In percent of GDP)
Total revenue and grants19.719.620.120.918.2
Of which: taxrevenue16.716.716.918.116.2
Total expenditure and net lending27.023.523.424.823.9
Current expenditure21.120.520.620.821.5
Capital expenditure and net lending2/6.02.92.03.21.9
Overall balance after grants-7.4-3.8-3.3-3.8-5.7
Overall balance, excluding exceptional factors4/-5.3-3.74.6-4.3-7.1
External financing0.2-0.3-1.1-0.5-2.9
Domestic financing6.24.33.94.22.9
Of which: banking system1.21.7-1.52.3-0.8
Sale of equity in state-owned enterprises and residual -V0.9-0.10.50.15.7
Sources: Ministry of Finance; and Bank of Mauritius

Budgetary central government, Government Finance Statistics basis; fiscal year from July to June,

From 1996/9? to 1997/98, net tending includes the on -lending of the proceeds from au international floating rate note (FR) issue of US$150 million. In 1998/99, it includes the repayment of the FRN on-lending equivalent to 0.8 percent of GDP.

Includes proceeds from the sale of government equity in state-owned enterprises equivalent to 0.9 percent of GDP in 1996797, and 5.7 percent of GDP in 2000/01,

Exceptional factors include the on-lending of the proceeds from the FRN equivalent to 2.2 percent of GDP in 1996/97; and to 0.1 percent of GDP in 1997/98. They also include the repayment of the FRN on lending equivalent to 0.8 percent in of GDP in,1998/99, and 1,4 percent of GDP in 2000/01, as well as the proceeds from the sale of fixed assets equivalent to 0.5 percent of GDP1 in 1998/99 and0.4 percent of GDP in 1999/2000.

Sources: Ministry of Finance; and Bank of Mauritius

Budgetary central government, Government Finance Statistics basis; fiscal year from July to June,

From 1996/9? to 1997/98, net tending includes the on -lending of the proceeds from au international floating rate note (FR) issue of US$150 million. In 1998/99, it includes the repayment of the FRN on-lending equivalent to 0.8 percent of GDP.

Includes proceeds from the sale of government equity in state-owned enterprises equivalent to 0.9 percent of GDP in 1996797, and 5.7 percent of GDP in 2000/01,

Exceptional factors include the on-lending of the proceeds from the FRN equivalent to 2.2 percent of GDP in 1996/97; and to 0.1 percent of GDP in 1997/98. They also include the repayment of the FRN on lending equivalent to 0.8 percent in of GDP in,1998/99, and 1,4 percent of GDP in 2000/01, as well as the proceeds from the sale of fixed assets equivalent to 0.5 percent of GDP1 in 1998/99 and0.4 percent of GDP in 1999/2000.

Table 22Mauritius: Revenue and Giants, Budgetary Central Government,1996/97-2000/011/(In millions of Mauritian rupees)
19967971997/981998/991999/002000/01
Rev. EstProv.
Tax revenue14,00115,68617,90020,37320,189
Taxes on net income and profits2,2872,4092,7002,8811,039
Individuals1,2201,2381,3631,5401,518
Corporate1,0671,1711,3371,3411,521
Taxes on property9761,1021,2091,2061,324
Land and real estate190182213218279
Financial transactions7879199969881,045
Registration fees77690S9829601,017
Incorporation and lodging fees910101920
Mortgages11598
Taxes on domestic goods and services5,1576,0078,0059,3399,466
Selective excises1,2761,5291,7762,1602,107
Alcoholic beverages645682769946927
Tobacco6178321,2131,178
Other1416111
Taxes on services1,0621,3261,1361,099957
Gambling and lottery profits548705765892S59
Tourism51362037120698
Taxes on use of goods377428455476477
Business licenses107135141143126
Motor vehicles270292314334351
Sales tax on goods/value-added tax2,4422,7244,6395,6045,925
Taxes on international bade5,5706,1575,9736,9356,349
Import duties5,5706,1575,9736,9356,349
Customs duties5,5686,1565,9726,9246,349
Stamp duties221110
Export dudes00000
Other tax revenue (stamp duty)1112131211
Nontax revenue2,4112,5993,2942,9662,318
Property income1,9542,0742,2461,8621,660
Bank of Mauritius1,200800S25800800
Interest and royalties518537585448351
Dividends151441592543426
Operating surpluses14252194512
Rent and other4144506671
Other nontax revenue457525548604658
Fees, charges, and sales318369385409450
Fines and forfeits4454466576
Government pension fund92101114120123
Miscellaneous414108
Total revenue16,41218,28521,19423,33922,507
Foreign grants63217135161199
Total revenue and grants16,47518,50121,32923,50022,707
Sources: Ministry of Finance.

Fiscal year from July to June.

Sources: Ministry of Finance.

Fiscal year from July to June.

Table 23Mauritius: Functional Classification of Expenditure. and Net Lending, Consolidated Central Government, 1996/97-2000/011/(In millions of Mauritian rupees)
1996/971997/981998/991999/002000/01
Rev. Est.Prov.
Total expenditure20,35121,87325,55627,64331,420
Public administration and security3,9534,1154,6084,7675,363
General public services2,0322,2602,3842,5242,917
Defense224189216239253
Public order and safety1,6971,6662,0082,0042,193
Social services10,26811,09712,86013,95115,494
Education3,3783,5073,8663,9874,357
Health and sanitation1,5671,7682,1322,2562,547
Social security and welfare3,7874,2375,1405,5636,160
Housing and community amenities2/1,2081,2511,2981,7042,023
Recreational, cultural, and religious328334424441408
Economic services2,5612,4923,6494,1924,175
Fuel and energy911232523
Agriculture, forestry, and fishing9021,0521,3891,2601,329
Mining, manufacturing, and construction161140155174198
Transport and communications5963661,0511,1021,855
Other economic services8939231,0311,631770
Other purposes3,5694,1694,4394,7336,388
Public debt interest2,8753,5033,6263,8565,527
Transfers to local governments694666813877861
Other00000
Lending minus repayments3/2,284252-705167-1,574
Total expenditure and net lending22,63422,12524,85127,81029,846
Sources: Ministry of Finance; and Central Statistics Office

Budgetary central government, Government Finance Statistics basis; fiscal year from July to June.

Includes water supply.

From 1996/97 to 1997/98, net lending includes the on-lending of the note (FRN) issue of US$150 million. In 1998/99, it includes the repayment of the FRN on-lending equivalent0.8 percent of GDP,

Sources: Ministry of Finance; and Central Statistics Office

Budgetary central government, Government Finance Statistics basis; fiscal year from July to June.

Includes water supply.

From 1996/97 to 1997/98, net lending includes the on-lending of the note (FRN) issue of US$150 million. In 1998/99, it includes the repayment of the FRN on-lending equivalent0.8 percent of GDP,

Table 24Mauritius: Transfers and Subsidies by Budgetary Central Government, 1996/97-2000/011/(In millions of Mauritian rupees)
1996/971997/981998/991999/002000/01
Subsidies and other current transfers6,7297,3338,5859,40610,342
Local governments622666741762790
Education1,4091,5211,8871,9662,143
Secondary schools7478511,0041,0471,116
University of Mauritius330360430194208
Education Institute0008078
Gandhi Institute000103110
College of the Air0004755
Block grant115127148137142
Examination Syndicate48546969754
Others169129236290361
Public service pensions1,0661,1921,3621,5951,724
National Pension Fund2,2352,5082,9323,1773,507
Rice and wheat flour2/454371369433339
Domestic crops7855995364
Unemployment fund00001
Outdoor relief21264100
Development works Corporation (DWC)3/010390122115
Other current transfers8448911,0631,2571,660
Capital transfers5937731,0091,3981,737
Local governments721100
Public financial institutions12072222191225
Nonfinancial public enterprises3776807771,1991,501
Aviation, PTT,4/ and sewerage46257344687851
Other331423433512650
International organizations1513228
Other97773
Total subsidies and transfers7,3228,1069,59310,80412,080
Source: Ministry of Finance.

Fiscal year from July to June.

The 1996/97 amount includes the liquidation of MUR 97 million in balances remaining from past subsidies.

Includes mainly wages and salaries for government employees transferred to the DWC.

PTT is the postal and telecommunications enterprise.

Source: Ministry of Finance.

Fiscal year from July to June.

The 1996/97 amount includes the liquidation of MUR 97 million in balances remaining from past subsidies.

Includes mainly wages and salaries for government employees transferred to the DWC.

PTT is the postal and telecommunications enterprise.

Table 25Income and Expenditure of the National Pension Fund,1996/97-2000/011/(In millions of Mauritian rupees)
1996/971997/981998/991999/002000/01
Rev. Est.
Income4,1375,2455,4576,1176,887
Government grant2,2432,5142,9413,2673,606
Contributions from employers and employees7748468939841,004
Investment income1,0241,0451,4051,7182,071
Other income96840218148206
Expenditure2,5062,8213,2713,6624,107
Noncontributory (basic) pensions2,2342,5062,9293,2623,598
Food aid allowance9811616
Contributory and industrial injury pensions174211242280342
Administration and other costs899689114151
Excess of income over expenditure1,6312,4242,1862,4552,780
Balance in fund at end of year2/11,83414,25816,44418,89921,679
Sources: National Pension Fund.

Fiscal year from July to June.

Change in balance at end of year may differ from excess of income over expenditure owing to valuation adjustments.

Sources: National Pension Fund.

Fiscal year from July to June.

Change in balance at end of year may differ from excess of income over expenditure owing to valuation adjustments.

Table 26Mauritius: State Trading Corporation Ration Rice and Flour Transactions, 1996/97-2000/011/
1996/971997/981998/991999/002000/01
Rev. Est.
(In millions of Mauritian rupees)
Sales revenue546.4516.9527.9544.5534.0
Ration rice222.5189.2187.2194.8187.0
Flour323.9327.7340.7349.7347.0
Total cost995.7849.6874.8872.5875.1
Ration rice407.2324.3339.6368.6348.5
Flour5SS.5525.3535.2503.9526.6
Purchasing cost910.9759.2828.4787.6803.5
Ration rice362.5272.3309.8320.3305.3
Flour548.4486.9518.6467.3498.2
Other charges84.E90.446.484.971.6
Ration rice44.752.029.848.343.2
Flour40.138.416.636.628.4
Balance (deficit = -)-449.3-332.7-346.9-328.0-341.1
Ration rice-184.7-135.1-152.5-173.8-161.5
Flour-264.6-197.6-194.5-154.2-179.6
Financing449.3332.7346.9328.0341.1
Budgetary transfers432.4350.0346.9328.1320.6
Other financing2/16.9-17.30.00.120.5
Memorandum items:(In metric Ions)
Sales volume
Ration rice52,34342,58940,85443,77842,242
Flour78,71579,71683,02985,27984,670
(In Mauritian rupees per metric ton)
Rice unit values
Fixed price, initial4,420.04,420.04,420.04,420.04,420.0
Fixed price, final4,420.04,420.04,420.04,420.04,420.0
Revenue4,250.84,442.54,581.74,449.04,426.9
Coast7,779.57,614.68,313.58,419.58,250.1
Subsidy3,528.63,172.23,731.83,970.53,823.2
Flour unit values
Fixed price, initial4,100.04,100.04,100.04,100.04,100.0
Fixed price, final4,100.04,100.04,100.04,100.04,100.0
Revenue4,114.84,110.84,103.34,100.54,098.3
Cost7,476.36,589.66,445.65,908.66,219.4
Subsidy3,361.52,478.82,342.31,808.12,121.2
(Annual change in percent)
Sales volume
Ration rice16.0-18.6-4.17.2-3.5
Flour3.11.34.22.7-0.7
(In percent)
Revenue/total cost ratio54.960.860.362.461.0
Ration rice revenue/cost54.658.355.15185J.7
Flour revenue/cost55.062.463.769.465.9
Source: State Trading Corporation.

Fiscal year from July to June. Ration rice is a variety of rice.

Residual; reflects exrrabudgetary financing (overdrafts and acceptances, net of deposits) and timing discrepancies.

Source: State Trading Corporation.

Fiscal year from July to June. Ration rice is a variety of rice.

Residual; reflects exrrabudgetary financing (overdrafts and acceptances, net of deposits) and timing discrepancies.

Table 27Mauritius: Financing of Central Government Deficit, 1996/97-2000/011/(In millions of Mauritian rupees)
1996/971997/981998/991999/002000/01
Rev. Est.
External financing (net)198-274-1,170-509-3,584
Eurocurrency (net)00000
Other external (net)198-274-1,170-509-3,584
Disbursements by purpose916531464411348
Nonproject loans00000
Project loans916531464411348
Mixed project and suppliers’ credits5000534
Electric power382231346
Water and irrigation401008074182
Other agriculture28251800
Roads, highways, and bridges021000
Telecommunications00000
Housing projects8316900
Urban development00000
Education1831009400
Environment1771839529567
Other projects47681052520
Disbursements by source916531464411368
Bilateral lenders35822718061184
Multilateral agencies558304284350184
Miscellaneous00000
Repayments (-)-718-805-1,634-920-3,932
Eurocurrency00000
Other loans2/-718-805-1,634-920-3,932
Domestic financing (net)5,2044,0054,1504,7123,623
Banking system9881,631-1,5712,579-958
Bank of Mauritius-9571,6691,893-1,496-651
Commercial banks1,945-38-3,4644,075-307
Nonbank4,2162,3745,7212,1334,581
Short-term instruments3,4678586,2862,7715,067
Long-term instruments7491,516-565-638-486
Residual3/758-1075431087,100
Total financing6,1603,6233,5224,3107,139
Sources: Ministry of Finance; Bank of Mauritius; and IMF staff estimates.

Fiscal year from. July to June.

Includes the partial repayment of US$33 million of the floating rate note in 1998/99.

Reflects differences of coverage and valuation, as well as timing; includes proceeds from the sale of government equity in state-owned enterprises equivalent to 0.9 percent of GDP in 1996/97 and 5.7 percent of GDP in 2000/01,

Sources: Ministry of Finance; Bank of Mauritius; and IMF staff estimates.

Fiscal year from. July to June.

Includes the partial repayment of US$33 million of the floating rate note in 1998/99.

Reflects differences of coverage and valuation, as well as timing; includes proceeds from the sale of government equity in state-owned enterprises equivalent to 0.9 percent of GDP in 1996/97 and 5.7 percent of GDP in 2000/01,

Table 28Mauritius: Government Domestic Nonbank Debt Outstanding by Holder,1996/97-2000/011/(In millions of Mauritian rupees; and of period)
1996/971997/981998/991999/002000/01
Rev. Est.
National Pension Fund4,5085,8968,3858,53512,820
Short term6931,4214,1664,4186,937
Long term3,8144,4744,2194,1175,883
Post Office Savings Bank198180173160236
Short term0143624112
Long torn198366137137124
Slate Insurance Corporation of Mauritius (SICOM)1,3381,2821,3552,0813,620
Short term7362316291,3912,272
Long term6221,0517266901,348
Insurance companies8109049406791,489
Short item6156266954941,298
Long term195278245185191
Sugar Insurance Fund Board (SIFB)2/101131400385874
Short term101131400385874
Long term00000
National Savings Fund (NSF)3/3586219699892,092
Short term3584948425621,738
Long tarn0127127127354
Employees’ Welfare Fund (EWF)3/192127379372516
Short term192104356349493
Long term023232323
Other public enterprises61713162125142
Short term61713162125142
Long term00000
Independence and Republic bonds4/2,3752,37523752,0790
Short term00000
Long term2,1752,37523752,0790
Consolidated Sinking Fund (CSF)5/1,2141,4412,0182,074323
Short term005007000
Long term1,2141,4411,5181,375323
Others7181,7163,4685,1775,125
Short term6701,6683,4205,1295,177
Long term4848484848
Total12,42814,80220,52322,65627,237
Short term3,9614,81911,10613,87618,943
Long term8,4679,9839,4178,7808,294
Memorandum items:
Changes during year (total)4,2162,3745,7212,1334,581
Short term3,4678586,2862,7715,067
Long term7491,516-565-638-186
Sources: Ministry of Finance; and IMF staff estimates.

Includes tax treasury bills end tax reserve certificates (short term) and government stocks, treasury certificates, and anonymous bears bonds (long term). Fiscal year font My to June.

The SIFB collects premiums from planters and insures sugar crops against natural disasters, such as cyclones and drought.

The NSF and the EWF make deductions from salaries and accumulate funds to contribute to government employees.

Only individuals and nonbank institution, including the African Development Bank and petroleum companies, subscribe to the Independence and Republic bonds.

Fund for payment of government debt.

Sources: Ministry of Finance; and IMF staff estimates.

Includes tax treasury bills end tax reserve certificates (short term) and government stocks, treasury certificates, and anonymous bears bonds (long term). Fiscal year font My to June.

The SIFB collects premiums from planters and insures sugar crops against natural disasters, such as cyclones and drought.

The NSF and the EWF make deductions from salaries and accumulate funds to contribute to government employees.

Only individuals and nonbank institution, including the African Development Bank and petroleum companies, subscribe to the Independence and Republic bonds.

Fund for payment of government debt.

Table 29Mauritius: External Debt of Central Government Disbursements,1996/97-2000/011/(In millions of Mauritian rupees)
1996/971997/981998/991999/002000/01
Rev. Est.
All bilateral lenders357.5226.9179.760.6184.3
Governments123.2221.9176.934.546.3
People’s Republic of China8.050.62.40.00.0
Flacq hospital0.20.00.00.00.0
Housing7.830.82.40.00.0
Recreation center0.019.80.00.00.0
France54.969.4107.018.03.4
Small-scale irrigation project0.00.00.00.00.0
Goodlands district water supply35.151.649.80.00.0
Hotel catering school17.79.30.00.00.0
Lycee Polytechnique, Rose Hill0.47.030.00.00.0
Northern Plain irrigation project1.71.422.215.50.8
Grand Baei sewerage project0.00.05.02.52.6
India (lines of credit for development projects and supplies)37.00.50.05.132.1
Japan23.3101.667.511.410.8
Telecommunications0.00.00.00.00.0
La Butte drainage and soil consolidation project23.3101.667.511.410.8
Other bilateral agencies234.34.92.826.1138.0
Of which: Kuwait Fund234.34.92.826.149.1
Water project2.92.50.013.639.9
Fort George power station231.42.42.812.59.2
Multilateral agencies558.4303.8284.2349.9161.8
Arab Bank for Economic Development in Africa9.90.066.8177.989.1
Industrial credit9.90.00.00.00.0
Housing rehabilitation0.00.066.8133.40.0
Waterworks0.00.00.044.523.7
Midlands dam0.00.00.00.065.4
African Development Bank/Fund23.134.00.00.00.0
Bridge project0.00.00.00.00.0
Rose Belle rehabilitation15.012.70.00.00.0
Third highway project8.121.30.00.00.0
Education project0.00.00.00.00.0
Mauritius and Rodrigues sewerage0.00.00.00.00.0
European Development Fund14.544.88.7118.20.0
Prime Minister’s rock removal scheme0.00.00.00.00.0
Agricultural and industrial credits3.20.00.00.00.0
Water projects0.044.48.30.00.0
Regional meteorological project11.30.50.40.50.0
Baei du Tombeau sewerage project0.00.00.0117.70.0
International Bank for Reconstruction and Development274.2169.2202.753.872.7
Environmental program67.924.65.30.00.0
Debt and liquidity management improvement project0.00.00.00.00.3
Agricultural management services13.212.418.00.00.0
Sugar (bagasse) energy development project0.00.00.00.00.0
Third education project113.350.546.00.00.0
Vocational training19.510.41.40.00.0
Technology development project35.927.023.39.80.0
Higher- and technical education project24.522.116.50.00.0
Freeport project0.021.2