The government has submitted a proposed state budget of MVR 59.7 billion for 2027 to the People's Majlis.
Presented by Finance Minister Hassan Zareer, the figure is MVR 4.5 billion less than the MVR 64.2 billion allocated for the current year. However, expenditure is projected to reach MVR 52.6 billion, an increase of MVR 3.3 billion from the previous year, with development spending rising from MVR 6.8 billion to MVR 9.9 billion.
Revenue is forecast at MVR 43.2 billion, leading to a projected deficit of MVR 9.4 billion, or about 7.3 percent of GDP, wider than the current year's estimated gap.
The budget incorporates assumptions of a tourism recovery, with arrivals next year projected between 2.28 million and 2.5 million. It also lists plans for a sukuk or international bond issuance to manage foreign debt obligations.
Zareer highlighted the impact of the Middle East conflict on this year's performance and outlined measures to support economic diversification and infrastructure.
