(Bloomberg) -- Mauritius’ public sector debt could fall to the pre-pandemic level of 60% of gross domestic product by 2030 as the economy grows and the budget deficit is reined in, Finance Minister Renganaden Padayachy said.

Debt is expected to decline from a revised estimate of 79% for the fiscal year ending this month. Lower debt will provide the government with sufficient financial firepower to face future shocks, Padayachy told reporters at a briefing in Ebene, near the capital of Port Louis.

Buoyed by traditional sectors such as tourism and the export of manufactured goods, the Indian Ocean island economy is set to expand 8% in fiscal year 2023-2024 and by 5% the following year, the government predicts. Capping the budget deficit at 3% of gross domestic product will also contribute to lowering the debt to the 60% level, Padayachy said.

The budget deficit for the year starting July 1st is seen narrowing to 2.9% from 3.9% in the prior period.

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