Government proposes MVR 59.7 billion budget for 2027, cutting spending by MVR 4.5 billion

The government has proposed a MVR 59.7 billion budget for 2027, reducing overall spending by MVR 4.5 billion while allocating funds for housing, healthcare and major infrastructure projects.

Minister of Finance and Public Enterprises Hassan Zareer presented the budget to the People’s Majlis. He said it aims to maintain public services and support development while strengthening fiscal and debt sustainability.

Spending and revenue

Total expenditure is projected at MVR 52.6 billion, made up of MVR 42.7 billion in recurrent spending and MVR 9.9 billion in capital spending. Recurrent spending accounts for more than four-fifths of the total. The Public Sector Investment Programme has been allocated MVR 8.2 billion for development projects.

State revenue is estimated at MVR 43.2 billion. The government does not plan to introduce new taxes in 2027 and will instead focus on improving tax administration. The GST registration threshold will rise from MVR 1 million to MVR 1.5 million from 1 January 2027.

Housing, health and education

• Housing: MVR 3 billion for development projects and MVR 750 million in equity funding for housing loan schemes that support buying or building homes.

• Health: MVR 10.2 billion.

• Education: MVR 136.3 million for the free degree programme and MVR 651 million for higher education loan facilities.

Malé Commercial Port move

The budget includes the relocation of Malé Commercial Port to Thilafushi, where physical work is underway. The government aims to complete the project and begin operations by 11 November 2027.

The new port is being built on 60 hectares with a 1.4-kilometre quay wall, compared with the existing port’s five hectares and 101-metre quay wall. The government expects it to raise cargo handling capacity, cut cargo clearance times from between nine and 14 days to under three days, and ease congestion in Malé.

Other projects

• Thilamalé Bridge: the Greater Malé Connectivity Project is due for completion and commissioning by the end of 2027.

• Tourism: the target is 2.5 million visitors in 2027, which has been designated Visit Maldives Year.

• Solar: the Maldives Solar Development and Energy Storage Solutions Project would add 250 megawatts of renewable capacity with storage, supporting the target of 33% renewable electricity by 2028. The government says it would cut annual fuel imports by 120 million to 130 million litres, lowering fuel costs and subsidy needs.

• Fisheries: plans include an extra 11,400 tonnes of storage capacity, 550 tonnes of daily ice production and a bigeye tuna packing facility in Hulhumalé.

Zareer tied the budget to President Mohamed Muizzu’s goal of making the Maldives a developed nation by 2040, saying it advances development while maintaining macroeconomic stability.