Mauritius: Design Options for Fiscal Responsibility Legislation and Supporting Fiscal Institutions

The Fiscal Affairs Department (FAD) supported the Government of Mauritius through the Ministry of Finance and Economic Development (MoFED) to undertake a diagnostic review of the existing legal framework for Public Financial Management (PFM) and supporting fiscal institutions with a view to advise on design options and implementation requirements for fiscal responsibility legislation (FRL). The technical assistance report proposes a comprehensive FRL framework that incorporates fiscal responsibility principles, numerical and procedural fiscal rules, mandates the development of a detailed medium-term fiscal framework (MTFF), and establishes robust transparency requirements and corrective mechanisms to facilitate effective implementation. Reinforcement or reform of several priority fiscal institutions, such as macro-fiscal forecasting, MTFF, budget preparation process, fiscal risk management and fiscal reporting is required to support effective implementation of the FRL.