Minister of Finance and Planning Moosa Zameer on Thursday presented the government’s USD 4.2 billion (MVR 64.9 billion) budget for 2026 to Parliament, highlighting fiscal sustainability and debt reduction as key goals.

Minister Zameer said the budget serves as a strategic tool to restore fiscal discipline while addressing the country’s significant debt obligations.

The government has proposed total expenditure of USD 3.2 billion, with USD 2.6 billion for recurrent expenses and USD 603.1 million for capital projects.

Revenue and grants are projected at USD 2.6 billion for the year.

A major feature of the proposal is the inclusion of USD 603.1 million for debt repayment, covering securities and bonds maturing next year.

After debt servicing, the effective operational budget stands at USD 3.6 billion.

Minister Zameer affirmed that the government is fully prepared to meet its USD 600 million debt obligation in 2026, crediting recent reforms for the country’s improved fiscal position.

He noted that official reserves reached USD 860 million as of September, with net usable reserves of USD 200 million, and that the state maintained a budget surplus for most of this year.

To finance upcoming obligations, the government plans to raise USD 1.1 billion through external loans, securities, and multilateral support.

The Sovereign Development Fund, now dollar-managed, holds over USD 100 million to support future repayments.