President Dr Mohamed Muizzu has announced that the State budget for 2025 carries the smallest deficit recorded since 2020, becoming the first time in five years that the Government will conclude the fiscal year without submitting a supplementary budget to Parliament. 

Speaking at the Rayyithunnaa Eku Kurriah – Haftha 104 ceremony held to commemorate the second anniversary of his Administration, the President said the year’s deficit will remain below the MVR 9.4 billion ceiling approved by Parliament, noting that the economy has now recorded several consecutive weeks without a deficit. He attributed the improvement to stronger fiscal discipline, more efficient financial management and a shift towards responsible expenditure.

Detailing the Government’s financial achievements, President Dr Muizzu stated that the Sovereign Development Fund (SDF) held only USD 2 million and MVR 2.4 million when he assumed office on 17 November 2023. As of 17 November 2025, he said the Fund has increased to USD 126 million, describing the growth as a direct outcome of focused economic reforms and tightened fiscal controls.

He added that businesses exchanged USD 584 million into local banks between October 2024 and October 2025 as a result of Government measures aimed at strengthening the financial system. According to the President, these inflows have pushed gross reserves to USD 866 million.

President Dr Muizzu emphasised that these improvements were achieved without resorting to quantitative easing, noting that the Administration worked strictly within existing legal and regulatory frameworks. He also highlighted that the Government has settled MVR 444.3 million in unpaid bills carried forward from previous administrations, easing financial pressure on state institutions.

Addressing salary harmonisation, the President stated that the the minimum basic salary has more than doubled from MVR 3,100 to MVR 7,530. He further noted that the basic salary of an administrative officer has increased from MVR 5,610 to MVR 9,110, a 63 per cent rise, while the salary of a muezzin has risen from MVR 3,565 to MVR 8,295, an increase of 133 per cent.

Responding to public concerns about the overtime cap, President Dr Muizzu said the Government has exempted public holidays, the last ten days of Ramadan and days when the President’s Office is officially closed, ensuring staff receive full overtime pay during those periods.

The President also highlighted progress on long-term development planning, stating that consultations have been completed with residents of every inhabited island for the upcoming 20-Year National Development Plan. He said the first draft of the plan will be finalised by February 2026 and will serve as a national roadmap for sustainable economic and social development