Maldives' debt projected to reach MVR 129bn next year

Finance Minister Ibrahim Ameer. (Sun Photo)

The Finance Ministry has estimated that the state's debt will reach MVR 129 billion next year.

According to the statistics released by the ministry, it will be 111 percent per capita.

The finance ministry has also revealed some of the hiccups in the state’s fiscal strategy. These include unbudgeted expenditures during the year and excessive unnecessary expenditures.

They also noted the main obstacles to the fiscal strategy which include various economic difficulties and revenue challenges.  They also noted that there are also constraints on spending.

The Finance Ministry has estimated that the per capita debt to GDP ratio will continue to decline till 2027. By 2027, debt is projected to be 86 percent of GDP. 

Earlier, the World Bank had expressed concern that the country's economy would be unable to withstand further shocks in the medium term due to the large amount of government debt to be repaid by 2026.