Maldives' total debt projected to reach MVR 161.3 billion in 2027

The Maldives' total debt is projected to reach MVR 161.3 billion in 2027, according to estimates presented by the Ministry of Finance and Public Enterprises in the proposed state budget for next year.

The ministry submitted the 2027 budget to Parliament on Thursday, proposing expenditure of MVR 59.7 billion, a reduction of MVR 4.5 billion compared with the MVR 64.2 billion budget for 2026.

The government projects a budget deficit of MVR 9.4 billion for 2027.

According to the budget estimates, the country's total debt is expected to reach MVR 161.3 billion by next year, comprising MVR 108 billion in domestic debt, MVR 43.4 billion in external debt and MVR 9.7 billion in government-guaranteed debt.

The government forecasts total revenue of MVR 43.1 billion in 2027.

To finance its expenditure, the government plans to raise MVR 18.9 billion through domestic and external financing arrangements.

The proposed budget outlines plans to secure MVR 6.9 billion from external sources.

This includes MVR 2.3 billion in loans, MVR 1.8 billion in budget support and MVR 2.6 billion through the issuance of bonds or sukuk.

The government also plans to raise MVR 11.9 billion from domestic sources.

Of this amount, MVR 8.6 billion is expected to be raised through domestic securities and other financing instruments.

The budget also anticipates receiving MVR 900 million in repayments of loans previously issued by the government.

A further MVR 2.3 billion is expected to be withdrawn from the Sovereign Development Fund to support the government's financing requirements.

The proposed budget will be subject to parliamentary scrutiny before approval.