The Maldives’ budget deficit is projected to reach MVR 9.4 billion in 2027, equivalent to 7.3 per cent of GDP, Finance Minister Hassan Zareer has said.

Presenting the proposed 2027 State Budget to Parliament, the Minister said direct government debt is expected to stand at 117 per cent of GDP next year, before declining to 116.3 per cent in 2028 and 107.9 per cent in 2029.

The overall budget deficit for 2026 is projected at MVR 7.6 billion, or 6.2 per cent of GDP.

The primary balance is forecast to stand at 2.5 per cent of GDP in 2026 and 3.4 per cent in 2027.

Despite major shocks to the national budget from changes in the international environment, the Minister said the Government expects to keep this year’s deficit within the approved level.

He attributed the outlook to tighter budget execution controls, which will continue next year.