2027 Budget Aims to Cover Recurrent Costs with Revenue, Cut Debt: Finance Minister

Finance Minister Hassan Zareer has stated that the proposed state budget for 2027 sets important goals to cover recurrent expenditures with revenue and reduce state debt. He made the remarks while presenting the budget to the People's Majlis. The minister highlighted that maintaining the country's financial stability alongside development projects is the government's responsibility, with the most important part of the budget being targets to ensure the sustainability of state finances. Key targets include keeping state revenue at no less than 32 percent of GDP and covering recurrent expenditures with revenue. Revenue is projected at MVR 43.2 billion in 2027, while recurrent expenditures are estimated at MVR 42.7 billion. Direct state debt is estimated at 117 percent of GDP in 2027, dropping to 116.3 percent in 2028, with a target to reduce it to 107.9 percent by 2029. The budget also sets targets to keep PSIP expenditures funded from the domestic budget at no more than seventy percent, and interest expenditure on foreign loans at twelve percent of total revenue. The overall goal is to reduce the state's balance deficit to five percent of GDP by end of 2028, with PSIP expenditures anticipated to reduce to seven percent of GDP in the same year.