Finance Minister Projects MVR 52.6 Billion Government Expenditure for Next Year, on Par with 2024 Levels

The Maldivian government has projected that its expenditure for running the government next year will remain at the same level as this year, according to the state budget submitted to the People's Majlis. Finance Minister Hassan Zareer presented the MVR 59.7 billion budget for the upcoming year, detailing that MVR 52.6 billion would be spent on government operations. This includes MVR 42.7 billion in operational or recurrent expenditure and MVR 9.9 billion in capital expenditure for development projects and investments, of which MVR 8.2 billion is allocated for the Public Sector Investment Programme. So far this year, MVR 42.5 billion has been spent on recurrent expenditures, compared to MVR 37.4 billion in the previous year. The budget projects the government will receive MVR 43.2 billion next year in revenue and free aid, an increase of MVR 1.4 billion from the projected figure for this year. Minister Zareer stated that no new taxes are included in the budget to increase revenue. Instead, efforts will focus on strengthening the tax system, closing loopholes, and improving compliance with tax laws. Plans include introducing an electronic invoicing system and expanding the Maldives Guest Information System, which was newly introduced this year. Additionally, the budget proposes changing the responsibility of Customs' fiscal mandate to the Ministry of Finance and amending tax laws.