Hello, this is Dr. Bruce and I would like to help you with your pug.
I'm sorry to hear that he is having this problem.
It is unlikely that the eye has burst, but it certainly sounds like he needs stronger medication to treat this eye.
I am surprised that there is no antibiotic being administered to help fight off infection. An eye that has been injured in a fight is likely infected and needs to be treated with both topical and oral antibiotics.
I would strongly suggest that you ask your vet for an antibiotic ointment to put in the eye. Generally, a triple antibiotic ophthalmic would be the best choice. I would also consider putting him on an oral antibiotic as well. I would consider a fluoroquinolone such as baytril, or a penicillin such as clavamox.
The blue tint you see on the eye is likely to be edema or swelling in the cornea (surface) of the eye. This occurs with severe inflammation. The tissue may be coming from the 3rd eyelid, or it could be lacerated cornea. If you send me a picture or three, I may be able to tell what is occurring.
He also should be wearing an e-collar (cone) to protect the eye from further damage. He must not be allowed to get to the eye to scratch it. That will worsen the condition.
If the eye is worse after the antibiotics are started, then it may be necessary to have a specialist examine him. There are ophthalmologists available and can be found by going to this website. http://member.acvo.org/search_results Put in UK for the location, and a list will come up.
I hope this helps and that he is feeling better very soon. If you would like to continue this chat, please reply to this post and I will get back to you as soon as possible.