2025 budget projects lowest deficit since 2019, minister says
Zameer noted that the current 2024 budget relied on reform measures that remain unimplemented, without sufficient deficit reduction initiatives.
Proposed MVR 56.6 billion budget for 2025 is expected to yield the lowest deficit-to-GDP ratio since 2019, finance minister Moosa Zameer announced while presenting the budget in parliament Thursday.
The budget projects a deficit of MVR 9.4 billion, representing 7.8% of GDP, while the primary deficit stands at MVR 3.8 billion, or 3.2% of GDP.
The government anticipates MVR 39.8 billion in grants and revenue, while projected expenditures are set at MVR 51 billion, resulting in a fiscal gap of MVR 9.4 billion.
According to Zameer, the deficit for 2025 is lower than recent years, marking it as the most modest budget shortfall in terms of GDP since 2019.
Zameer noted that the current 2024 budget relied on reform measures that remain unimplemented, without sufficient deficit reduction initiatives. However, the proposed 2025 budget focuses on practical fiscal strategies to stabilise the deficit.
The economy is projected to expand by 6.4% next year, driven in part by the completion of the passenger terminal development project at Velana International Airport and an anticipated increase in tourist arrivals. Growth in tourism and related sectors is also expected to play a central role in supporting this forecasted economic expansion.
