90 percent of housing funds remain idle as capital spending falls

Despite the government’s pledge to prioritize housing this year, 90 percent of the funds allocated for housing-related projects remain unused, according to the Finance Ministry’s latest fiscal update.  

President Dr. Mohamed Muizzu had announced that MVR 3 billion would be earmarked for housing, with MVR 1.5 billion worth of projects to be implemented. However, the supermajority budget passed by Parliament allocated MVR 1.8 billion for housing projects.  

Finance Ministry figures show that only MVR 183.9 million was spent by 27 November, just 10 percent of the allocation, and 74.8 percent lower than the same period last year.  

With the year drawing to a close, a large portion of the housing budget remains idle. The data also reveals a sharp decline in overall development spending: of the MVR 12.6 billion allocated for capital expenditure, only MVR 5.2 billion has been utilized, compared to MVR 11.2 billion last year. The bulk of capital spending went to roads, bridges and airports (MVR 1.99 billion).  

The 2025 budget of MVR 56.6 billion has seen MVR 47 billion spent so far, leaving the state with an overall deficit of MVR 1.4 billion. Officials note that no supplementary budget will be required this year, citing a primary surplus maintained for 40 consecutive weeks through higher revenues and reduced project costs.  

Critics argue that many projects have been handed to government companies at their own expense, sidelining private businesses. Meanwhile, spending on loss-making state-owned enterprises has ballooned: although only MVR 378 million was budgeted, actual expenditure has reached MVR 1.96 billion.  

President Muizzu, who previously served as Housing Minister and Mayor of Male', has pledged to provide housing for every citizen over 18 within five years. Yet housing projects remain stalled, with land and flats promised under the previous administration still delayed.  

Looking ahead, the President has approved a MVR 64 billion budget for 2026, promising to prioritize the health sector while making room for projects needed to fulfill his housing commitments.