The government on Thursday presented its USD 4.2 billion (MVR 64.9 billion) proposed budget for 2026 to Parliament, marking an increase from the USD 3.7 billion budget approved for 2025.

However, President Dr. Mohamed Muizzu has described the new budget as “smaller and more fiscally responsible” than the current one. In a social media post, the President explained that while the total figure appears higher, the effective operational budget is actually lower once mandatory debt repayments are excluded.

According to President Muizzu, USD 603.1 million of the total allocation is earmarked exclusively for repaying government securities maturing next year.

Excluding this amount, the true operational spending stands at USD 3.6 billion, reflecting a leaner fiscal plan focused on sustainability.

The government’s figures show total expenditure projected at USD 3.2 billion, with anticipated revenue and grants amounting to USD 2.7 billion for the upcoming fiscal year.