MAURITIUS

Mauritius is a unitary republic with a unicameral parliamentary system of government. The national assembly is composed of 70 members directly elected for a five-year term by universal suffrage. The president and prime minister are indirectly elected by the national assembly for a five-year term. The president is the head of State while the prime minister has full executive powers as head of government, assisted by a council of ministers.

Mauritius, a small island developing State, obtained independence from the United Kingdom on 12 March 1968 as parliamentary democracy with a Westminster system of government. Decentralisation is not enshrined in the 1968 Constitution, with the exception of the Island of Rodrigues, which is guaranteed special status and its own regional assembly (chapter VIA). The legal framework for local governments is provided by the Local Government Act 36 of 2011, and the 2001 Rodrigues Regional Assembly Act. Members of the national assembly cannot stand for office in local or regional assembly elections.

Local authorities located in Mauritius fall under the aegis of the Ministry of Local Government and Disaster Risk Management (MLGDRM) while the responsibility for Rodrigues is the Ministry of Rodrigues, Outer Islands, and Territorial Integrity (MROITI). The MLGDRM administers the Local Government Act 2011 by making necessary regulations and issuing policy guidance to local bodies to promote proactive and transparent governance and delivery of services, bridge the developmental divide between urban and rural areas, improve cleanliness of public places, and strengthen resilience to disaster risks. The Ministry is responsible for allocating ‘grant-in-aid’ and other funds for capital projects and approving finances of councils. MROITI is under the responsibility of the prime minister’s office.

Local governments may establish joint committees between two or more authorities in their common interest. In Rodrigues, the chief commissioner is required to inform the prime minister concerning the activities of the regional assembly. The executive council must submit to the prime minister policy statements on matters relating to the Island of Rodrigues and may refer specific matters to the prime minister for the consideration of cabinet.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
5 municipal councils (1 municipal city council and 4 municipal town councils) 130 village councils	7 district councils	Island of Rodrigues
Average municipal size: 9 378 inh.
135	7	1	143

OVERALL DESCRIPTION: Local governments in Mauritius island are classified spatially as urban and rural. Urban areas are concentrated in two districts: Port-Louis (the capital city cum district), and Plaines Wilhems. The other seven districts in Mauritius island can be classified as rural.

Municipal councils exist in urban areas. There is one municipal city council in Port-Louis and four municipal town councils in Plaines Wilhems. Rural parts are characterised by a two-tier system, with seven district councils that oversee the second tier of 130 village councils. The small Island of Rodrigues is a regional territory of the Republic of Mauritius with its own regional assembly and no other level of subnational government.

According to the Local Government Act of 2011, municipal (city and town) and village councillors are elected by universal suffrage for a six-year term. District councillors, on the other hand, are indirectly elected by secret ballot from members of village councils in their jurisdictions. Each village council has one or two representatives in their district council, depending on their population size. As per the Local Government (Amendment) Bill (VII of 2021), in periods of emergency or epidemic, the six-year term of municipal and village councils may be extended by a maximum of two years. Moreover, every member of an executive committee of a municipal city council, municipal town council or district council serves mandate until the next general elections of all the municipal and village councils.

REGIONAL LEVEL: The Island of Rodrigues falls within the larger territory of the Republic of Mauritius and is governed at the regional level by the Rodrigues regional assembly (RRA) and an executive council. The Rodrigues regional assembly consists of 18 members who are directly elected for five years, 12 of whom are local regional members (two from each of the six local regions) elected by the first-past-the-post system, and six elected by proportional representation. The executive power of the assembly is vested in the executive council headed by a chief commissioner, who is indirectly elected by assembly members for a five-year term.

INTERMEDIATE LEVEL: District councils constitute the first tier of local government in rural areas. The seven district councils consist of representatives of village councils, indirectly elected every two years. The district council chairperson is also indirectly elected every two years.

MUNICIPAL LEVEL: There are five municipal councils: the municipal city council of Port-Louis and the municipal town councils of Beau Bassin-Rose Hill, Curepipe, Quatre Bornes and Vacoas-Phoenix. These form the lowest and only level of subnational governments in urban areas, with no district council, unlike rural areas. Each municipal council is headed by a chief executive who is responsible to the permanent secretary of the MLGDRM. Mayors in municipal councils are indirectly elected by their peers, once every two years.

Village councils constitute the second tier of local government in rural areas. They are grouped into divisions for electing district councilors among their members. Each village council consists of nine village councilors and is headed by a part-time chair, who is indirectly elected every two years in secret ballot by the village councilors.

The 2011 Act provides municipalities and districts with the same competences and powers. These include education (nursery and preprimary schools), health protection, construction and maintenance of roads (cleaning and lighting), environment (waste management and public spaces), cemeteries, organisation of sports and cultural activities, and economic promotion. Municipalities and districts carry out these responsibilities through six departments namely: Administration Department, Finance Department, Land Use and Planning Department, Public Infrastructure Department, Public Health Department and Welfare Department. Village councils’ functions significantly overlap with those of municipal and district councils in specific fields such as environment protection and culture and recreation. However, villages are not responsible for the construction and maintenance of roads. Village councils may, subject to the approval of the Minister, carry out any other functions assigned to municipal and district councils. The regional assembly of Rodrigues has extensive responsibilities in the fields of general public services, economic affairs and transportation, environment protection, and culture and recreation. It is to be noted that public health and education are also administered by RRA, whereas in Mauritius island, 'health protection’ by local bodies is typically restricted to health inspections of trade premises and abatement of any (environmental) nuisance in the interest of public health. Examples of the latter include spraying of public places to reduce mosquito-borne ‘Chikungunya’ incidence and cleansing and disinfection of such places to abate COVID-19 risks.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Intermediate level + Municipal level (urban)	Municipal level (rural)
1. General public services (administration)	Public buildings and facilities Administrative and permit services (civil status register)	Public buildings and facilities (town houses, etc.)Administrative and permit servicesCrematoria and cemeteries	Crematoria and cemeteries (maintenance)
2. Public order and safety	Civil protectionCriminal justiceFirefighting
3. Economic affairs / transports	Road networks and facilities (regional)Public transport (road)ParkingTourismTelecommunications and ITCommerceAgricultureEmployment policies and services	Road networks and facilities (local)Public transport (road)ParkingPromotion of local economic developmentCommerce
4. Environment protection	Waste management (collection, storage, treatment, disposal)Parks and green areasNature preservationPreservation of watercourses (lakes, rivers, etc.)Street cleaning	Waste management (collection, storage, treatment, disposal)Parks and green areasNature preservationPreservation of watercourses (lakes, rivers, etc.)Street cleaning	Waste management (collection, storage, treatment, disposal)Street cleaning (shared)
5. Housing and community amenities	Public lightingHousingRegional planning	Public lightingPublic fountainsHousing (construction and renovation)Urban and land use planning
6. Health	Health (administration)	Health protection	Maintenance of public health amenitiesPublic works to promote sanitation
7. Culture & Recreation	Cultural activities (exhibition halls, art galleries, theatres, etc.)Cultural heritage and monumentsLibrariesMuseumsSports and recreationReligious affairs	Cultural activities (exhibition halls, art galleries, theatres, etc.)LibrariesMuseumsSports and recreation	Cultural activitiesMuseumsLibrariesSports and recreation
8. Education	Pre-primary, primary and secondary level education (administration)Vocational training	Pre-primary education (kindergarten and nursery)Educational courses (e.g., yoga, aerobics, sewing, etc)Cyber Centre/Cafe	Pre-primary education (kindergarten and nursery)Educational courses (e.g., yoga, aerobics, sewing, etc)
9. Social Welfare	Support services for familiesSocial security (administration)

Scope of fiscal data: Rodrigues Island and local governments (cities, towns and districts)

SNA 2008

Availability of fiscal data: High

Quality/reliability of fiscal data: Medium

GENERAL INTRODUCTION: Local government expenditure and revenue constitute low shares of national GDP indicating weak local budgets and financial autonomy. The financial administration of subnational governments is under the oversight of the national government. In accordance with the 2011 Act, local government budget estimates must be approved by the Ministry of Local Government and Disaster Risk Management (MLGDRM) for local governments located in Mauritius island and by the Ministry of Rodrigues, Outer Islands, and Territorial Integrity (MROITI) for Rodrigues regional assembly. These estimates are then submitted to the Ministry of Finance and Economic Development.

Local governments have authority to manage and allocate funds, incur expenses and borrow subject to the parent ministry’s approval. Additionally, local governments must submit a monitoring report of actual revenues and expenditures to the ministry, as per Article 141 of the 2011 Act. The MLGDRM and MROITI are also responsible for allocation of grants-in-aid for recurrent and capital expenditures.

Subnational government expenditure by economic classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total expenditure	398	1.9%	5.5%	100.0%
Inc. current expenditure	323	1.6%	4.9%	81.3%
Compensation of employees	184	0.9%	8.5%	46.4%
Intermediate consumption	86	0.4%	9.1%	21.6%
Social expenditure	23	0.1%	1.2%	5.8%
Subsidies and current transfers	30	0.2%	2.8%	7.6%
Financial charges	0	0.0%	0.0%	0.1%
Others	0	0.0%	2.1%	3.1%
Incl. capital expenditure	74	0.4%	14.1%	18.7%
Capital transfers	-	-	-	-
Direct investment (or GFCF)	74	0.4%	16.0%	18.7%

EXPENDITURE: Local expenditure for the Republic of Mauritius represented 1.9% of GDP and 5.5% of general government expenditure in 2020. 81.3% of subnational government spending is used to meet recurrent expenses, 57.0% of which is used as salaries for staff. The next most important line of expenditure is ‘intermediate consumption’, which accounted for 26.5% of current expenditure and 21.6% of total subnational government expenditure in 2020. Current expenditure for the Rodrigues region represents 35.5% of aggregate subnational government expenditures in this category, of which 49.5% is used for staff expenditure, 22.2% for subsidies and current transfers, and 20.1% for intermediate consumption.

DIRECT INVESTMENT: Direct capital expenditure constituted 18.79% of total local expenses and 14.1% of public investment. As per the Public Sector Investment Programme 2020-2024, such investments earmarked for local bodies in Mauritius island include the construction of district council headquarters, renovation works of town halls, construction of market places and multi-purpose complexes, and setting up of incinerators. In the Rodrigues regional territory, a more extensive list of capital projects exists encompassing sectors like water and wastewater, energy, tourism, agriculture, transport (land, sea and air), and social and community development.

Subnational government expenditure by functional classification
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total expenditure by economic function	398	1.9%	-	100.0%
1. General public services	119	0.6%	4.7%	29.9%
2. Defence	-	-	-	-
3. Security and public order	5	0.0%	0.8%	1.2%
4. Economic affairs/transports	79	0.4%	5.6%	19.8%
5. Environmental protection	62	0.3%	51.1%	15.5%
6. Housing and community amenities	51	0.2%	27.8%	12.8%
7. Health	21	0.1%	3.0%	5.3%
8. Recreation, culture and religion	24	0.1%	16.9%	5.9%
9. Education	17	0.1%	1.3%	4.3%
10. Social protection	21	0.1%	1.0%	5.3%

In 2020, the majority of subnational governments’ expenditure has been dedicated to the following sectors: general public services (29.9%), economic affairs and transportation (19.8%) environmental protection (15.5%), housing and community services (12.8%), recreation, culture and religion (5.9%), and social protection (5.3%). These sectors correspond to the responsibilities assigned to the municipal and district councils as well as the Rodrigues regional assembly (RRA). Expenditure on security and public order, health, and education is the responsibility of RRA, whereas in the island of Mauritius, these functions are carried out by the central government.

Subnational government revenue by category
2020	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	430	2.1%	7.9%	100.0%
Tax revenue	16	0.1%	0.4%	3.7%
Grants and subsidies	384	1.9%	-	89.3%
Tariffs and fees	28	0.1%	-	6.5%
Income from assets	2	0.0%	-	0.5%
Other revenues	0.03	0.0%	-	0.0%

OVERALL DESCRIPTION: Municipal and district councils are entitled to raise revenues in specific areas such as building and land use permits, trading licenses, markets, cemeteries, scavenging, traffic fees, advertisements, and fines. In addition, city and municipal councils also have the capacity to raise revenue through a general property tax. Nonetheless, subnational governments have a limited financial autonomy; they depend mainly on intergovernmental transfers, which represented 89.3% of total subnational government revenue in 2020.

Total subnational revenues represented 7.9% of general government revenues and 2.1% of GDP in 2020. These revenues have remained relatively stable as a percentage of GDP over the last years, while slightly increasing as a percentage of general government revenues.

The Rodrigues regional assembly, with its specific status, is responsible, on its own, for a significant share of total subnational revenues (43.5% in 2020).

TAX REVENUE: As specified in the 2011 Act and since the abolition of the rental tax in 2012, the major tax revenue of local authorities in Mauritius is the property tax (93.6% of total subnational tax revenue in 2020 and 97.5% of general government tax revenue of the same category). This source of revenue however represents a very small share of total subnational government revenue (3.5%) since it is constrained by narrow national tax bases. Municipal councils determine the tax rate based on the annual net value of the immovable property and its specific use (residential, commercial or industrial).

Another source of tax revenue for local bodies including the RRA is the tax on goods and services. In 2020, it is noted that the RRA did not collect property tax and solely depended on tax revenue on goods and services.

GRANTS AND SUBSIDIES: The annual grant-in-aid system allocates for all local governments a monthly amount for current expenditures. This annual grant is voted as part of the budgets of the MLGDRM and MROITI at the beginning of the financial year. In 2020, around 84.6% of the subnational government grants were current grants, representing 75.5% of total subnational government revenue. Capital grants constituted around 14% of local government revenue, the major recipient being Rodrigues regional assembly (57% of capital grants, which corresponds to around 6.6% of total subnational government grants).

With almost 90% of subnational government revenue coming from grants and subsidies, local bodies in the Republic of Mauritius are highly dependent on the central government. This amount nevertheless represented less than 2% of national GDP in 2020.

OTHER REVENUE: Other revenue comprises mainly administrative fees and charges such as market place selling fees, visitor fees, and exploitation fees; and property income that consists of property leasing and sales and income from municipal companies and public utilities.

However, revenue from these sources constitutes only a small fraction of local government revenues with ‘tariffs and fees’ and ‘income from assets’ amounting to 6.5% and 0.5% of total subnational government revenue, respectively, in 2020.

Subnational government fiscal rules and debt
2019	Dollars PPP / inh.	% GDP	% general government debt	% SNG debt	% SNG financial debt
Total outstanding debtConsolidated	3	0.0%	0.0%	100.0%	-
Financial debt	3	0.0%	0.0%	100.0%	100.0%
Loans	3	-	-	100.0%	100.0%

FISCAL RULES: Each local authority has an internal control unit headed by a professionally qualified internal auditor who is responsible for ensuring that independent evaluations are carried out on a regular basis. According to Section 19 of the Finance and Audit Act, the annual accounts of the city, municipalities and districts must be presented to the national director of audit each financial year.

DEBT: Local governments and the Island of Rodrigues may borrow, with previous approval of the central government, based on their financial capability. Article 89 of the 2011 Local Government Code provides that a municipal city, town or district council may take on debts secured against its revenues or other property and by issuing bonds with the approval of the minister of finance. The Code stipulates that municipal councils may borrow up to MUR 10 million (approximately USD 614 000 PPP).

IMF Government Finance Statistics publishes data on local government debt in Mauritius (excluding the RRA). In 2019, loans appear to be the sole source of subnational government debt in the island of Mauritius, constituting an insignificant proportion of total general government debt and GDP, and amounting to approximately USD 3.2 PPP per inhabitant.

TERRITORIAL MANAGEMENT OF THE CRISIS: As a small island state, the management of COVID-19 crisis in Mauritius has been centralised with limited involvement of local governments in Mauritius Island but a more active participation in Rodrigues Island where public health services and education are also the responsibility of the RRA.

The COVID-19 crisis has seen coordination between various ministries and directives given from the central government to subnational governments. At the beginning of the crisis in January 2020, a High-Level Committee on COVID-19 was initially set up by the government of Mauritius and chaired by the prime minister. An inter-sectoral committee was also created within the Ministry of Health and Wellness (MoHW) and COVID response was included in the Health Sector Strategic Plan 2020-2024. Intense sensitisation campaign has been carried out by MoHW using various media outlets (newspapers, national TV, etc.). Information has also been disseminated by the National Communication Committee on COVID-19. Active surveillance of incoming passengers has been carried out by health inspectors and quarantine centres were set up. The Ministry of Commerce and Consumer Protection encouraged retail/ distribution outlets to provide e-shopping services.

In March 2020, COVID-19 reached Mauritius island via imported cases. The first national lockdown (sanitary curfew) was announced by the central government starting 23 March 2020 and ending 15 April 2020 in Rodrigues, then extended to 1 June 2020 in Mauritius island. Deconfinement was done in a phased manner. As from 15 May, selective businesses were allowed to operate with strict health protocol (e.g., mask wearing, distancing, etc.). The national police force was responsible to see that the Sanitary Curfew Order was upheld.

On 24 March 2020, the government set up a COVID Solidarity Fund with funds coming from national and international sources. Mass vaccinations started in January 2021. The second lockdown period lasted from 10 March to 30 June 2021, with temporary confinements implemented. International borders re-opened completely on 1 October 2021.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: Local governments have played an important role during the crisis by ensuring continued provision of services related to scavenging and waste management, cleaning of drains, and cleaning and disinfection of public places including markets and fairs, traffic centers, bus shelters, green spaces and assets owned/managed by local authorities. Social distancing measures were implemented by local authorities when preparing for re-opening of markets and fairs post first lockdown.

Subnational governments also provided assistance in distribution of food packs to needy ones and helped the Ministry of Commerce and Consumer Protection for price verification. Burial of COVID-deceased persons at dedicated burial place as per MoHW protocol was also managed locally.

Pamphlets on COVID were distributed at community halls and centres of municipalities, village and district councils, ports and airports, educational institutions, and health facilities. Posters, banners and billboards were also placed at those strategic places including public transport.

During the second lockdown (March 2021), subnational governments helped the vaccination campaign by providing accommodation and other logistics.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: The budget speech of FY 2020/21 records that GDP in Mauritius dropped by 14.9% in 2020 (COVID-year with first lockdown). Tourism sector, exports (-36.3%), household consumption (-16.8%) and investment (-26.7%) all fell steeply despite government support to households and firms.

The COVID crisis significantly contracted subnational government finances, both expenditures and revenues. Total subnational government expenditure fell from USD 432.1 PPP per inhabitant in 2019 (non-COVID year) to USD 397.6 PPP per inhabitant in 2020, amounting to a decline in share of subnational government expenditure in general government expenditure same category from 7.0% (2019) to 5.5% (2020). Recurrent expenditure as percent ot total subnational government expenditure rose from 72.8% in 2019 to over 80% in 2020 while direct capital investment in subnational governments fell from 27.2% to 18.7%.

Among economic functions over years 2019 and 2020, public affairs share in total subnational government expenditure fell from 38.4% to 29.9%, economic affairs rose from 17.6% to 19.8%, environmental protection increased from 13.8% to 15.5%, and housing and community amenitites increased from 9.6% to nearly 13%. Also noteworthy, is a marginal rise in health expenditure incurred by the RRA from to 5.3% in 2019 to 5.9% in 2020.

Subnational government total revenue as percent of general government revenue fell from 8.8% in 2019 to 7.9 % in 2020. Nevertheless, grants and subsidies rose both as share of GDP and share of total subnational government revenue. At a more disaggragate level, current grants in total subnational government revenue increased from 72.7% in 2019 to 75.6% in 2020 while capital grants fell from 15.8% to 13.7%.

Thus, national government via current grants-in-aid particularly played key role in stabilising subnational government revenue in 2020. Moreover, capital works in subnational governments faced a setback and/or were postponed during that pandemic year.

ECONOMIC AND SOCIAL STIMULUS PLANS: Economic and social stimulus plans have been centrally managed in Mauritius. These include monetary policy, wage subsidy, and income support for the self-employed, firms and households. A COVID-19 Project Development Fund (CPDF) was set up in April 2020 to implement an investment programme following adverse COVID-19 effects on the economy. CPDF also finances projects under Economic Recovery Programme aimed at boosting GDP, protecting and creating jobs protection, reducing import dependence, and improving general well-being. Drain projects under National Flood Management would also be financed by the CPDF. This fund represents around 16% of the Public Sector Investment Programme (PSIP) budget planned in FY 2021/2022.

Cumulative expenditure using CPDF in 2020 and 2021 has been MUR 839.6 million (~ USD 50 million PPP), with 89% used for economic recovery and the rest for road and land transport infrastructure. Planned expenditure for 2021/22 is of MUR 11 692 million, with 2.6% allocated to health, 34% to social housing, 21.4% to economic recovery, 30.8% for flood management and 11.1% for road and land transport infrastructure.

From the COVID-19 Solidarity Fund, health investment amounting to MUR 50 million is planned in the PSIP 2021/2022. Current expenses from the fund (approved and disbursed) include support to the national COVID-vaccination programme and partial allowance to frontliners (via MoHW and RRA in Rodrigues).