The total expenditure of the proposed budget will run at MVR 52.6 billion, including operating expenditure or recurrent expenditure of MVR 42.7 billion and capital expenditure comprising development projects and investments of MVR 9.9 billion.
Finance Ministry
The Minister of Finance and Government Companies, Hassan Zareer, has presented a total budget of MVR 59,704,440,795 (Fifty-nine billion, seven hundred and four million, four hundred and forty thousand seven hundred and ninety-five Rufiyaa) for the coming year. This is MVR 4.5 billion less than the 2026 budget. The budget is based on the President's vision of making the Maldives a developed country; a vision set by the President, Dr Mohammed Muizzu.
The total expenditure of the proposed budget will run at MVR 52.6 billion, including operating expenditure or recurrent expenditure of MVR 42.7 billion and capital expenditure comprising development projects and investments of MVR 9.9 billion. The Public Sector Investment Program (PSIP) has been allocated MVR 8.2 billion for development projects. In addition, the government is expected to receive MVR 43.2 billion in revenue. Additionally, the President has decided to strengthen the tax system and increase the annual income threshold for GST registration from MVR 1 million to MVR 1.5 million starting from 01 January 2027.
In line with the government’s core policies, the budget includes MVR 3 billion for residential housing projects and MVR 750 million for the equity of housing and construction loan schemes. MVR 10.2 billion has been allocated for the health sector, MVR 136.3 million for the free degree program in education and MVR 651 million for the higher education loan facility.
The budget has focused on various economically important projects. The project to relocate the commercial port to Thilafushi has started. An international standard port with a 1.4 km keywall is being developed on an area of 60 hectares in Thilafushi, instead of the existing 5 hectares of land and 101 meters of keywall. This government aims to complete the project and operationalise the port by November 11 next year, which will increase container space to 390,000, and speed up the long wait of 9 to 14 days for unloading goods to just 3 days shorter, and reduce congestion on the city’s roads. The Greater Male' Connectivity Project or Thilamale' Bridge is scheduled to be completed and operational by 2027 as well. This will greatly ease logistics and commercial activities in the entire region.
To boost tourism, 2027 is the "Visit Maldives Year", and the target is to attract a total of 2.5 million tourists. In addition to this, the "Maldives Solar Development and Energy Storage Solutions Project" to convert 33 percent of energy generation to renewable energy has also been planned. The project will provide 250 megawatts of renewable energy generation and energy storage systems, reducing annual fuel purchases by 120 million to 130 million litres and substantially reducing fuel costs and subsidies, according to the budget. In addition, an additional 11,400 tonnes of storage and ice production capacity will be increased to 550 tonnes per day by 2027, and a large fish packing facility will be established in Hulhumale'.
