The Government has proposed a State Budget of MVR 59.7 billion for 2027, a 7 per cent reduction from the MVR 64.2 billion budget for 2026.

Presenting the proposed budget, Minister of Finance and Public Enterprises Hassan Zareer said the total allocation would be MVR 59.704 billion, with revenue projected at MVR 43.1 billion and expenditure at MVR 52.6 billion.

Tax revenue is expected to account for MVR 33.6 billion, while non-tax revenue is projected at MVR 9.1 billion and grants at MVR 349.3 million.

Recurrent expenditure is forecast at MVR 42.7 billion, while capital expenditure is expected to increase to MVR 9.8 billion from MVR 6.8 billion this year. Other expenditure is projected to decline from MVR 14.8 billion to MVR 7.1 billion.

The budget deficit is projected to widen to MVR 9.4 billion, up from MVR 7.5 billion in 2026.

To finance the deficit, the Government plans to reduce domestic borrowing to MVR 11.9 billion from the MVR 19.2 billion expected this year, while foreign financing is projected to rise to MVR 6.9 billion from MVR 5.3 billion.