The Parliament has granted approval to the government’s USD 4.2 billion state budget for 2026, endorsing the proposed spending plan without modifying its overall consolidated figure.

The budget passed with a strong majority during Tuesday’s sitting, where 74 members voted in favour and 12 voted against.

The government forecasts total revenue of USD 2.6 billion for the coming fiscal year, alongside an estimated deficit of USD 583.7 million.

Officials aim to finance this shortfall through a range of fiscal instruments.

Total expenditure is projected at USD 3.2 billion, including USD 2.6 billion in recurrent spending and USD 603.1 million dedicated to capital investments.

Public Sector Investment Programme (PSIP) projects are expected to account for USD 518.8 million of that amount.

A considerable share of the budget USD 603.1 million has been allocated for the repayment of government securities and bonds, signalling ongoing efforts to meet debt obligations.

Excluding these repayments, the operational budget stands at approximately USD 3.6 billion.

The Budget Review Committee, after consulting various state institutions and the Ministry of Finance and Planning, endorsed the proposed budget without altering its total size, though it issued specific recommendations.

These included increasing the parliamentary administration’s special budget by USD 226,977 to meet operational demands, and urging the government to speed up the construction of new office buildings to address space shortages and reduce rental expenses across state offices.

Independent institutions had raised concerns about insufficient funding to fulfil their legal mandates.

The Ministry assured Parliament that additional resources would be provided from within the approved budget should any institution face difficulties in carrying out legally required duties.

The committee’s report was extensively debated before the final vote, reflecting the thorough legislative review of the country’s financial framework.

With the approval now secured, the government moves forward with implementing its economic agenda for 2026.