The government has proposed a state budget of MVR 59.7 billion for 2027, a reduction of approximately MVR 4.5 billion from the current year, with a focus on controlling expenditure, improving public finances and completing ongoing development projects.
The government has proposed a state budget of MVR 59.7 billion for 2027, a reduction of approximately MVR 4.5 billion from the current year, with a focus on controlling expenditure, improving public finances and completing ongoing development projects.
Minister of Finance and Government Shareholding Hassan Zareer presented the proposed budget to the People’s Majlis (Parliament) on Thursday, outlining the government’s spending priorities and revenue projections for the coming year.
The proposed budget stands at MVR 59.704 billion, compared to the MVR 64.2 billion approved for 2026.
Zareer described the budget as a step towards achieving President Dr Mohamed Muizzu’s vision of transforming the Maldives into a developed nation by 2040.
Total state expenditure is projected at MVR 52.6 billion, comprising MVR 42.7 billion in recurrent expenditure and MVR 9.9 billion in capital expenditure.
A further MVR 8.2 billion has been allocated for the Public Sector Investment Programme (PSIP) to support development projects.
The government expects total revenue and grants to reach MVR 43.2 billion in 2027, an increase of MVR 1.4 billion compared to 2026.
Revenue is projected to rise further to MVR 46.6 billion in 2028 and MVR 49.7 billion in 2029.
Zareer said the government aims to increase revenue through more efficient tax administration rather than raising existing tax rates.
The completion of ongoing development projects will be a key priority under the proposed budget, with the government targeting the completion of 70 percent of projects that have already been contracted and are currently underway.
The administration intends to prioritise delivering existing commitments so that communities can benefit from infrastructure investments already made, rather than initiating additional projects. President Muizzu had previously announced the same target as part of the government’s development strategy.
Zareer said achieving the administration’s long-term development ambitions would require responsible fiscal management, sustainable debt levels and investments that deliver tangible benefits to the public.
The proposed budget will now undergo review by the People’s Majlis before lawmakers vote on the government’s spending plan for 2027.
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