President Dr Mohamed Muizzu has stated that the 2026 State budget, excluding sukuk and bond repayments, is lower than the current year’s budget.

In a post on his official X account following the presentation of the 2026 State budget to Parliament by Minister of Finance and Planning Moosa Zameer, President Dr Muizzu said that the budget amounts to MVR 55 billion when excluding MVR 9.3 billion allocated for repaying sukuk and bonds.

Presenting the budget, Minister Zameer explained that the apparent increase in the total figure is mainly due to higher debt repayment costs. The Government is scheduled to repay USD 500 million in sukuk issued in 2021 and USD 100 million in bonds issued earlier, both of which were inherited from the previous administration.

“Excluding the cost of repaying the sukuk and bonds inherited by the Government, this is a smaller budget than the current fiscal year 2025,” Minister Zameer said. He added that the overall budget is projected to decline further to MVR 56.8 billion in 2027 and MVR 57 billion in 2028, reflecting a reduction in medium-term debt obligations.

The total budget approved by Parliament for 2025 was MVR 56.5 billion. Minister Zameer noted that the actual budget implementation this year is now estimated to be lower than the approved figure, crediting cost-saving measures introduced by the Government.

The proposed 2026 budget allocates MVR 39.9 billion, or 62 per cent of total expenditure, for recurrent spending, which includes the long-awaited pay harmonisation for public sector employees.

The Government expects to generate MVR 40.2 billion in total revenue and grants next year, while total expenditure is estimated at MVR 49.2 billion.