The Maldivian government has announced its 2025 budget today, totaling MVR 56.6 billion, with a projected deficit of MVR 9.4 billion—the lowest in recent history. Presented by Finance Minister Moosa Zameer, this budget underscores housing, healthcare, and social protections as primary sectors for funding, supporting the government’s agenda to improve citizens’ living standards across the Maldives.
With an estimated MVR 49.2 billion allocated for overall expenditures, the budget outlines MVR 35.9 billion for recurrent costs and MVR 13.3 billion dedicated to capital expenses. The Public Sector Investment Programme (PSIP) is expected to receive MVR 12.4 billion, focused on long-term infrastructure and growth. This forward-thinking approach also includes a landmark allocation for housing, with MVR 1.5 billion set aside for construction projects nationwide and a new MVR 4 billion home ownership loan program at a 5% interest rate. This initiative aims to facilitate affordable home ownership, especially in urban and rural communities.
Addressing revenue, the government forecasts MVR 39.7 billion from various sources, paired with MVR 6.6 billion in projected savings. Minister Zameer outlined several reforms aimed at enhancing budgetary efficiency, such as a shift to direct subsidies for those in need, adjustments to the Aasandha healthcare system, and restructuring of state pensions to prevent redundancies. Additional fiscal strategies include strengthening SOE governance and adapting to external market factors, particularly fluctuations in oil prices.
Finance Minister Zameer highlighted the budget’s commitment to fiscal responsibility, aiming to gradually reduce national debt while maintaining investment in essential public services. This approach, he noted, is central to the government’s broader vision for sustainable development and economic stability. As the budget moves through parliamentary review, these financial commitments signify the administration’s focus on improving quality of life and ensuring a resilient future for the Maldives.
