Towards Resilient Public Finance: National Assessment of Fiscal Risks in Critical Infrastructure Sectors in Mauritius
Mauritius is highly vulnerable to cyclones, floods, and storm surges, which repeatedly damage critical infrastructure and disrupt economic activity, creating significant fiscal pressures. Disasters increase government expenditure sharply, while impacts on revenue and debt are less pronounced but still contribute to fiscal imbalances.
The energy and road sectors face the highest exposure, with recurring losses and rising maintenance costs. Climate change is expected to intensify hazard frequency and severity, increasing future fiscal risks and infrastructure losses. Current disaster financing relies heavily on budget reallocations, contingency reserves, and international aid, which are often insufficient, leading to funding gaps during major events.
To strengthen resilience, the report recommends increasing disaster response funding, adopting pre-arranged financing instruments, improving insurance coverage, investing in resilient infrastructure, enhancing data systems, and integrating disaster risk considerations into fiscal planning and development strategies.
Key points
- Mauritius is highly vulnerable to cyclones, floods, and storm surges.
- Disasters significantly increase government expenditure, creating immediate fiscal pressures.
- Energy and transport sectors face the highest exposure to damage and losses.
- Climate change will intensify hazards, increasing long-term fiscal and infrastructure risks.
- Existing financing mechanisms remain insufficient, leading to gaps after major disasters.
- Adopt proactive financing, strengthen insurance, and invest in resilient infrastructure.
