Govt proposes MVR 59.7bn budget heavy on recurrent expenditure for 2027

Finance Minister Hassan Zareer on Thursday presented a proposed state budget of MVR 59.7 billion for next year.

The 2027 budget is around MVR 4.5 billion lower than the record MVR 64.2 billion budget approved for this year, which focused heavily on servicing Maldives’ staggering debt obligations.

Zameer told the Parliament that the 2027 budget was drafted in line with the government’s initiatives to cut costs and roll out fiscal reforms.

Budget details:

• Budget: MVR 59.7 billion
• Expenditure: MVR 52.6 billion
• Revenue and grants: MVR 43.2 billion

Of the MVR 52.7 billion in total expected expenditure, MVR 42.7 billion is set to be spent on recurrent expenditure.

“This includes MVR 42.7 billion in recurrent expenditure, and MVR 9.9 billion in capital expenditure. This includes MVR 8.2 billion allotted for Public Sector Investment Program in order to continue developmental projects,” he said, breaking down the expenditure.

The recurrent expenditure for 2027 is MVR 2.8 billion or 7 percent higher than the original MVR 39.9 billion in recurrent expenditure approved for this year, which was later revised by the Finance Ministry to MVR 42.5 billion. Therefore, the recurrent expenditure for 2027 is MVR 0.2 billion or 0.47 percent higher than the 2026’s revised figure.

2027 recurrent expenditure:

• Total: MVR 42.7 billion
• Salaries and wages: MVR 7.9 billion
• Allowances to employees: MVR 6.5 billion
• Pensions, retirement benefits and gratuities: MVR 2.6 billion
• Travelling expenses: MVR 246.7 billion
• Administrative supplies: MVR 978 million
• Administrative services: MVR 2.6 billion
• Operational consumables: MVR 1.7 billion
• Training expenses: MVR 700.7 million
• Repairs and maintenance: MVR 444.7 million
• Financing and interest costs: MVR 4.9 billion
• Grants, contributions and subsidies: MVR 13.9 billion
• Losses and write-offs: MVR 1.2 million

The biggest focus area for next year’s budget is healthcare, with MVR 10.2 billion allotted for the sector.