Government proposes MVR 59.7 billion budget for 2027

The government has proposed a state budget of MVR 59.7 billion for 2027. Minister of Finance and Public Enterprises Mr. Hassan Zareer presented the budget to the People’s Majlis today.

The proposed budget totals MVR 59,704,440,795. This is MVR 4.5 billion less than the budget approved for 2026.

Expenditure

Total state expenditure in 2027 is set at MVR 52.6 billion. This includes:

• MVR 42.7 billion for recurrent expenditure

• MVR 9.9 billion for capital expenditure, which covers development projects and investments

Of the capital expenditure, MVR 8.2 billion is allocated to the Public Sector Investment Program (PSIP) for development projects.

Revenue

Total state revenue and grants for 2027 are estimated at MVR 43.2 billion. This is MVR 1.4 billion more than in 2026. Revenue is projected to increase to MVR 46.6 billion in 2028 and MVR 49.7 billion in 2029.

No new taxes

Minister Zareer said the government has decided not to raise any state taxes in 2027. To increase revenue, the government will instead focus on:

• making the tax system more efficient

• closing existing gaps in the tax system

• improving compliance with tax laws and regulations

As part of these efforts, the government plans to expand the use of the Maldives Guest Information System, which was introduced this year. A modern e-invoicing system will also be introduced, in line with international best practice. The Minister said these measures will strengthen revenue administration and ensure that all taxes due to the state are collected.

The budget also proposes moving the fiscal mandate of the Maldives Customs Service under the oversight of the Ministry of Finance and Public Enterprises. Amendments to tax laws are also proposed to support stronger implementation of revenue policies.

Long-term vision

In his speech, the Minister said that true development must go beyond economic growth and improve the quality of life of every Maldivian. He said the government’s vision for 2040 includes modern infrastructure and transport, modern healthcare, quality education, comprehensive social protection and equal opportunities. He added that these goals will be pursued while protecting national identity, unity, independence and sovereignty.