Finance Minister Moosa Zameer announced that despite an expanding budget deficit this year, the 2025 budget is projected to have the lowest deficit relative to GDP since 2019.

Presenting the 2025 budget in parliament on Tuesday, Zameer outlined a projected budget deficit of MVR 9.4 billion, equivalent to 7.8 percent of GDP. The primary deficit is estimated at MVR 3.8 billion, or 3.2 percent of GDP.

Zameer emphasized that the budget was developed with reform measures that have not yet been fully implemented, which has limited the ability to significantly reduce the deficit.

“While this year’s budget deficit will increase, the 2025 budget will see the lowest GDP deficit ratio since 2019,” he stated.