The Maldives’ domestic debt is projected to surpass MVR 100 billion by the end of this year, according to budget estimates submitted to Parliament.
Fiscal records released by the Ministry of Finance show that domestic debt, excluding external loans, stood at MVR 98.9 billion by early this month. Budget forecasts indicate it will reach MVR 101.3 billion by the end of 2026 and rise to MVR 108.1 billion by the end of 2027.
When the current administration took office, domestic debt was MVR 68.1 billion. The figure is expected to cross the MVR 100 billion mark within three years as the government continues to rely heavily on the domestic market for financing.
Over the past two years and the current year to date, the government has incurred MVR 27.2 billion in debt. This total is projected to reach MVR 36.4 billion once remaining borrowings for this year and the MVR 6.8 billion allocated in the upcoming budget are finalised.
Finance Minister Hassan Zareer presented a proposed MVR 59.7 billion state budget for 2027, lower than this year’s allocation. Total public debt is projected to reach MVR 161.3 billion next year.
