The Maldivian government has submitted a proposed MVR 59.7 billion state budget for 2027 to the People’s Majlis, representing a reduction of approximately MVR 4.5 billion compared with the MVR 64.2 billion budget approved for 2026.
Minister of Finance and Planning Hassan Zareer presented the proposal, which totals MVR 59,704,440,795 and outlines the government’s spending priorities, revenue projections and development objectives for the coming year.
The budget forecasts MVR 52.6 billion in expenditure, comprising MVR 42.7 billion in recurrent spending and MVR 9.9 billion in capital expenditure. Of the proposed allocations, MVR 8.2 billion has been earmarked for the Public Sector Investment Programme (PSIP).
Revenue projected to increase through 2029
The government expects to collect MVR 43.2 billion in revenue and grants during 2027, an increase of MVR 1.4 billion compared with 2026.
Medium-term projections indicate that revenue and grants could rise further to MVR 46.6 billion in 2028 and MVR 49.7 billion in 2029.
The finance minister said the administration does not intend to increase existing taxes to meet its revenue objectives. Instead, the government plans to strengthen tax administration and improve the effectiveness of the existing taxation system.
Healthcare receives largest allocation
The proposed budget covers ten major areas of government expenditure, including healthcare, economic development and industry, debt-related expenditure, defence and justice, education, public services, social protection, housing and community development.
Healthcare is set to receive the largest allocation, at MVR 10.6 billion.
The proposal also aims to complete 70% of work on projects that have already been awarded and are currently being implemented, allowing communities to benefit from ongoing public investments.
Budget aligned with 2040 development vision
During the presentation, Minister Zareer described the 2027 budget as part of the government’s longer-term ambition to establish the Maldives as a developed nation by 2040.
He said the proposed fiscal framework prioritises economic stability, sustainable public finances and debt management while directing investment towards improvements in public services and living standards.
The minister also emphasised the importance of maintaining consistent development efforts and making necessary policy decisions to strengthen the country’s economic foundations, expand opportunities across the islands and support future generations.
The proposal will be considered by the People’s Majlis as part of the parliamentary budget process.
