Budget 2026: MVR 26B financing requirement, MVR 13B on debt repayment

The Maldives’ budget financing requirement is expected to rise to MVR 26.3 billion next year, MVR 12.9 billion of which will go towards servicing debt, mostly on paying off the sukuks issued by the former administration, according to the Finance Ministry.

The Finance Ministry on Thursday presented a proposed budget of MVR 64.2 billion for next year – marking the highest one on record.

But President Dr. Mohamed Muizzu has been quick to point out that the budget is lower than this year’s, once the MVR 9.3 billion in spending on repaying sukuks and bonds are excluded.

ސަރުކާރުން މިއަންނަ އަހަރަށް ލަފާކޮށް މިއަދު ހުށައެޅި ބަޖެޓަކީ މި ހިނގާ 2025 ވަނަ އަހަރުގެ ބަޖެޓަށްވުރެ ކުޑަ ބަޖެޓެއް. ބަޖެޓުގައި ހިމަނާފައިވާ 9.3 ބިލިއަން ރުފިޔާގެ ސުކޫކާއި ބޮންޑު އަނބުރާ ދެއްކުމުގެ ޚަރަދާނުލާ 2026 ވަނަ އަހަރުގެ ބަޖެޓަކީ 55 ބިލިއަން ރުފިޔާ.

— Dr Mohamed Muizzu (@MMuizzu) October 30, 2025

Planned sources of financing:

• MVR 16.8 billion through loans from foreign partners, sale of financial instruments such as bonds and sukuk, and through multilateral and bilateral financing
• USD 450 million or MVR 6.9 billion from the external market to refinance sukuk
• USD 300 million or MVR 4.6 billion in budgetary support from bilateral partners
• Around MVR 5 billion from domestic financial institutions
• MVR 4.2 billion from the Sovereign Development Fund

Presenting the budget to the Parliament in the afternoon, Finance Minister Moosa Zameer said that the country’s official reserves had dropped below USD 591 million and the usable reserve below USD 100 million at the end of the Maldivian Democratic Party (MDP) administration in 2023.

He said that the government had run at a surplus for the 40 consecutive weeks this year, and the official reserves has increased to USD 860 million, and the usable reserve to an estimated USD 200 million.

Other key highlights:

• Budget total: MVR 64.2 billion
• Revenue and grants: MVR 40.4 billion
• Expenditure: MVR 49.2 billion
• Budget deficit: MVR 8.8 billion (7.1 percent of GDP)

Zameer described next year’s budget as one that will save the Maldivian people from debt.

“It will have the Maldivian people from the huge debt this administration inherited, and will be the cornerstone to realizing President Dr. Mohamed Muizzu’s vision for development through careful policies without burdening the future generations,” he said, promising to implement measures to restore fiscal and debt sustainability.