Finance Ministry Launches Baseline Budget Submissions for 2027-2029 Fiscal Cycle

The Ministry of Finance and Public Enterprises has officially commenced preparations for the 2027-2029 medium-term budget, directing all government agencies to submit their baseline budget proposals. According to a directive issued this week, the baseline budget must strictly reflect anticipated expenditures for ongoing activities, projects, and services currently operating at existing levels. To maintain fiscal discipline, the Ministry explicitly prohibited the inclusion of new activities, additional services, or budgets for new employees in these initial submissions. Agencies are required to adhere to strict budget ceilings and align their requests with the targets specified in the official circular. The deadline for submissions is set for 2:00 pm on August 20. The Ministry warned that it reserves the right to unilaterally prepare budgets for any agency that fails to meet this deadline. The medium-term budget framework is designed to ensure long-term fiscal and debt sustainability while promoting public expenditure with measurable outcomes. Central to this strategy is the improvement of basic social services, prioritizing aid for the most vulnerable citizens, and enhancing the overall quality of life across the archipelago. Regarding personnel costs, the Ministry specified that expenditure must only cover authorized positions as of the current month, with overtime and allowances maintained at existing rates. In a push for austerity, agencies were advised to plan cost-effective official travel and avoid budgeting for departmental annual meetings, requesting that essential meetings be conducted economically. Furthermore, the budget is limited to funding for essential repairs and hardware critical for operational continuity to prevent service interruptions. The Ministry also requires that programmes allocated to each office be estimated separately to ensure transparency and accountability in public spending.