Member of Parliament for Hithadhoo Constituency Ahmed Azaan Marzooq has stated that the Maldives is facing challenges in repaying its debt because past governments failed to implement development projects that generate economic returns equal to the borrowings taken.

Speaking during the parliamentary debate on the 2026 State Budget, Azaan described the proposed budget as generally strong but highlighted several areas that require careful consideration during implementation.

He noted that the budget does not introduce new measures to increase revenue and that a significant portion of next year’s income is expected to come from TGST. Azaan said the Government should intensify efforts to promote tourism and attract visitors from new markets.

He added that the Maldivian economy needs to diversify to reduce its heavy dependence on tourism. On expenditure, Azaan pointed out that salary costs will rise substantially next year due to the planned pay increases. He said efficiency can be improved and costs reduced by adopting innovative practices and keeping pace with global changes.

Azaan also stressed the need to manage inflation, cautioning that higher salaries could contribute to rising prices. He urged the Government to plan ahead for these challenges.

He further stated that subsidies in the Maldives are distributed in a blanket manner, resulting in benefits being extended to foreigners and tourists. Azaan said subsidies, Aasandha and pensions should be targeted more effectively to ensure assistance reaches those who genuinely need it.

Turning to public debt, Azaan said next year will be a critical year for repayment obligations. He argued that current repayment difficulties stem from previous borrowings not being invested in projects that generate sufficient economic returns. However, he noted that the Ministry of Finance and Planning has assured that debt obligations for next year will be met.

Azaan said the objective of the 2026 budget is to ensure continued Government services and maintain fiscal stability, and he believes this goal can be achieved.

MP Azaan also said it is the responsibility of Parliament to ensure that the budget is implemented as approved. He assured the public that Parliament and its committees will work accordingly next year to uphold this responsibility.