Using data from three household surveys, we review whether growth in Mauritius was inclusive
and discuss the incidence of public expenditures and taxes. Generally, Mauritius enjoys an even
income distribution and low rates of poverty. Nevertheless, over the 2000s, despite overall
progress, the benefits of growth appear to have become more skewed. Employment income is
the main contributor to inequality in Mauritius. Social protection expenditures reduce poverty
and inequality, but could be better targeted, particularly for pensions. Income taxes are
progressive, though given their small relative weight they have a negligible impact on income
distribution. The VAT appears relatively progressive compared to other developing countries,
although its impact on the overall distribution is also small. With better targeting of the sizable
social spending, significant further progress in poverty alleviation could be achieved.