Govt to align expenditure with revenue, president says

President Mohamed Muizzu stated Thursday that the practice of state expenditure exceeding revenue has become a norm, and his administration is implementing measures to address the issue.

Delivering the presidential address at the opening of parliament, President Muizzu said that despite economic growth and increased revenue, significant fiscal challenges remain. He noted that state expenditures continue to surpass revenues and emphasised the need for corrective action.

“We are formulating strong measures to put the expenditure of the state budget on track, and the implementation of these measures is being carried out quickly,” he said.

He stated that the government aims to reduce the budget deficit and lower public debt.

“The aim is to reduce the budget deficit to MVR 9.4 billion this year by increasing revenue and reducing expenditure. Previously, the budget deficit stood at MVR 13.6 billion in 2024 and MVR 10.7 billion in 2023,” he said.

The president highlighted that steps are being taken to achieve this goal without slowing the implementation of development projects or affecting the delivery of public services. He expressed confidence that fiscal sustainability would be achieved through these measures.