President Dr Mohamed Muizzu has announced that the government is taking strong measures to reduce the budget deficit, cut borrowings, and improve financial stability.

In his presidential address to Parliament, he highlighted that despite economic growth and increased state revenue, Maldives continues to face financial challenges due to excessive public spending. The government is now focused on ensuring that expenses do not exceed earnings.

"With cost-cutting measures in place, the aim is to reduce the deficit substantially this year and lower government borrowing. The goal is to bring down the budget deficit to MVR 9.4 billion this year, compared to MVR 13.6 billion in 2024 and MVR 10.7 billion in 2023," President Dr Muizzu stated.

He assured that despite these financial reforms, public services and development projects will not be affected. The government remains committed to improving services while maintaining long-term fiscal stability.