Maldives proposes MVR 59.7 billion budget for 2027

The government has proposed a state budget of MVR 59.7 billion for 2027, with allocations for infrastructure development, housing and the completion of ongoing projects.

Minister of Finance and Public Enterprises Hassan Zareer presented the proposed budget to Parliament on Thursday, outlining expenditure plans and revenue projections for the coming year.

The government expects to collect MVR 43.2 billion in total revenue, comprising MVR 33.6 billion in tax revenue, MVR 9.1 billion in non-tax revenue and MVR 349.3 million in grants.

Total expenditure is projected at MVR 52.6 billion, including MVR 42.7 billion in recurrent expenditure.

The proposed budget includes MVR 9.9 billion for development projects and investments, of which MVR 8.2 billion has been allocated to the Public Sector Investment Programme (PSIP).

A further MVR 3 billion has been earmarked for housing projects, including MVR 750 million in equity funding for a loan scheme supporting first-time homebuyers and individuals seeking to construct homes.

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

Presenting the budget, Zareer said infrastructure development would be a priority for government expenditure next year.

He said the MVR 8.2 billion allocated to the PSIP would finance development projects across the Maldives.

"MVR 8.2 billion has been allocated specifically for development projects planned under the PSIP in different parts of the country. The target of next year's budget is to complete 70% of projects that have already commenced," Zareer said.

The minister said the budget had been prepared to maintain the government's financial capacity while ensuring that public services and development projects continued.

"This is a budget that will maintain the government's fiscal resilience, ensure that services provided to the public are not disrupted, enable the country's development to continue and deliver results," he said.

Zareer added that the government had placed particular emphasis on maintaining fiscal stability while implementing development projects.

The proposed budget will now be considered by Parliament before its approval.