The Government has proposed a significant increase in the Public Sector Investment Programme (PSIP) budget for the education sector next year, with allocations rising by 50 per cent compared to 2025.

According to the 2026 State Budget presented by the Ministry of Finance and Planning, MVR 799.6 million has been earmarked for PSIP projects in the education sector, up from MVR 516.9 million in the current year’s budget. The Ministry estimates that by the end of 2025, actual expenditure under the education PSIP will reach around MVR 153.5 million.

The largest share of the 2026 education PSIP will go toward improving primary and secondary education. A total of MVR 598.4 million has been allocated for the construction and renovation of school buildings, while MVR 57 million has been set aside for the establishment of sports facilities in schools. Combined, these investments amount to MVR 655.4 million, representing a 40.8 per cent increase from the current year’s allocation for similar projects.

In addition, MVR 118.8 million has been included for universities and colleges, and MVR 7.2 million for the establishment of research institutes and libraries.

President Dr Mohamed Muizzu has previously stated that the 2026 budget prioritises the health sector, followed by education. He said the Government’s key focus next year will be to expand development initiatives in these two areas and to strengthen facilities and resources in regions where they remain inadequate.