The government has proposed a state budget of MVR 59.7 billion for 2027. Finance Minister Hassan Zareer presented the figures to the People's Majlis.
The total is MVR 4.5 billion less than the MVR 64.2 billion allocated for the current year. Total expenditure is projected at MVR 52.6 billion, comprising MVR 42.7 billion in recurrent spending and MVR 9.9 billion in capital expenditure.
Of the capital allocation, MVR 8.2 billion is earmarked for the Public Sector Investment Program. State revenue and grants for 2027 are estimated at MVR 43.2 billion.
The government has said it will not introduce new taxes next year. Instead, it plans to improve tax administration and raise the GST registration threshold from MVR 1 million to MVR 1.5 million from January 2027.
Healthcare receives MVR 10.2 billion. Housing development is allocated MVR 3 billion, with an additional MVR 750 million for housing loan equity schemes. Education includes funding for free degree programmes and higher education loans.
The budget projects a fiscal deficit of roughly MVR 9.4 billion, or about 7.3 percent of GDP. Tourist arrivals this year are expected to fall short of earlier targets, though revenue remains on track. The government aims for 2.5 million visitors in 2027 through promotional activities.
The presentation comes amid ongoing pressures from higher energy costs and global economic conditions. The Finance Ministry has highlighted the need for continued fiscal management while supporting development priorities.
Parliament will now examine the budget proposal in detail before any final approval.
