The Parliament’s Budget Committee has approved the proposed state budget for 2026, including an additional MVR 3.5 million for the Parliament.

Finance Minister Moosa Zameer presented the government’s proposed budget of MVR 64.2 billion to Parliament on 30 August. He explained that, excluding MVR 9.3 billion carried over from the 2019 budget, the budget for 2026 stands at around MVR 55 billion.

During the committee meeting, independent institutions requested increased allocations, citing insufficient funding. However, the Finance Ministry advised that no additional funds be provided. Despite this, the requested MVR 3.5 million for the Parliament secretariat was approved.

The committee also made several recommendations to the government to increase certain parts of the budget. North Thinadhoo MP Saudulla Hilmy submitted the budget to the committee, seconded by Funadhoo MP Mohamed Mamdhooh. The proposal passed with eight votes in favour and four against. The budget report will now be presented on the Parliament floor for debate and final approval.

Minister Zameer noted that the increase in the budget is largely due to high debt repayment costs. The government is set to repay a USD 500 million bond issued in 2021 and an earlier USD 100 million bond. Excluding these repayments, the 2026 budget is smaller than the current year’s budget. Debt repayment costs are expected to reduce to MVR 56.8 billion in 2027 and MVR 57.0 billion in 2028.

Of the proposed budget, MVR 39.9 billion (62 percent) is allocated for recurrent expenditure, including salary increases for state employees. Capital expenditure is projected at MVR 9.3 billion. Revenue projections include MVR 31.3 billion from taxes and MVR 8.7 billion from non-tax income. Combined with MVR 373.6 million in grants, total state income is expected to reach MVR 40.3 billion, a 6.6 percent increase compared to 2025.