Mauritius Development Policy Loan

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The First Trade and Competitiveness Development Policy Loan Project (DPL-1) for Mauritius is tied to the first stage o f the Government's reform program, with previous actions mainly taken from the FY 2006/07 budget as subsequently implemented in the Finance Act and other legislation. The objectives and components of the project include: (i) reduce primary spending by 0.5 percent of gross domestic product (GDP) relative to 2005/06; (ii) reduce tax expenditures by 0.5 percent of GDP relative to 2005/06; (iii) pass legislation to abolish ministerial discretion over tax and duty exemptions; (iv) use fiscal rules to set budget envelope and strengthen monitoring to ensure allocations to line ministries accord with preset ceilings; and (v) operationalize the Mauritius Revenue Authority to strengthen tax administration.