Government announced plans to reduce public expenditure by MVR 6.6 billion as part of its proposed budget for 2025. Finance Minister Moosa Zameer presented the budget to Parliament for the first time under President Dr Mohamed Muizzu’s administration, emphasising key measures designed to enhance efficiency in state spending.

The reduction plan involves transitioning to targeted, direct subsidies to better support those in need. Additional reforms will be implemented in the Aasandha health insurance scheme to improve sustainability, alongside strategies to manage fiscal risks related to oil price fluctuations. The government will also review state pensions to eliminate redundancies and initiate structural reforms within State-Owned Enterprises (SOEs).

To increase revenue, the government plans to raise import duties on cigarettes, increase airport taxes and associated fees, adjust the green tax, introduce a fee for private sand dredging projects, and hike the Tourism Goods and Services Tax (TGST). Furthermore, it aims to fully implement the destination principle in the GST system and impose a frequency spectrum charge.

These revenue-enhancing measures, combined with MVR 11.5 billion in fiscal reforms integrated into the budget, are intended to strengthen the Maldives’ financial standing while advancing development priorities across key sectors.