Subscription Form

Finance Minister Hassan Zareer presents the proposed MVR 59.7 billion state budget for 2027

MALE’: Finance Minister Moosa Zameer has submitted a proposed MVR 59.7 billion state budget for 2027 to the People’s Majlis, outlining government spending plans amid efforts to reduce expenditure and introduce fiscal reforms.

The proposed budget is approximately MVR 4.5 billion lower than the MVR 64.2 billion budget approved for 2026. The government has attributed the reduction to measures aimed at controlling public spending and improving the country’s financial position.

Despite the lower overall allocation, recurrent expenditure is projected to rise slightly to MVR 42.7 billion in 2027, compared with MVR 42.5 billion estimated for 2026. Recurrent spending stood at MVR 37.4 billion in 2025.

Recurrent Spending Takes Largest Share

Of the proposed budget, MVR 52.6 billion is allocated for total government expenditure, including MVR 42.7 billion for recurrent costs and MVR 9.9 billion for capital expenditure.

The capital allocation includes MVR 8.2 billion for the Public Sector Investment Programme (PSIP), which funds development projects and investments.

Recurrent expenditure allocations include MVR 7.9 billion for salaries and wages, MVR 6.5 billion for employee allowances and MVR 2.6 billion for pensions and payments to former employees. Government assistance, contributions and subsidies account for MVR 13.9 billion, while loan servicing is allocated MVR 4.9 billion.

Government Spending Rises in 2026

Finance Ministry figures show that government expenditure reached MVR 36.39 billion as of October 15, representing a 16.9 per cent increase compared with the corresponding period last year. Recurrent expenditure accounted for MVR 31.35 billion of the total.

President Dr Mohamed Muizzu has previously said healthcare would receive the largest allocation in the 2026 budget, with MVR 10.2 billion earmarked for the sector.