Government Allocates $162 Million for New Development Projects in 2027–2029 Budget

The Ministry of Finance and Public Enterprises has invited government ministries to submit proposals for new initiatives to be included in the 2027–2029 programme budget. The government has earmarked approximately USD 162.1 million to fund these development projects over the three-year cycle. Infrastructure development remains the primary focus of the allocation, with USD 129.7 million specifically designated for the sector. An additional USD 32.4 million has been capped for various other items under the New Policy Initiative. State agencies have until August 18 to submit their detailed proposals for consideration. To ensure strategic alignment, the Ministry emphasized that all new budget items must strictly adhere to the government’s manifesto and the specific pledges of President Dr Mohamed Muizzu. Priority will be given to projects mandated by law or those required to fulfill existing international and domestic agreements. In a significant shift toward modernizing fiscal policy, the 2027–2029 budget will pilot "Gender Equity and Social Inclusion" (GESI) budgeting. This new framework is designed to track and analyze the impact of state spending on social equality, ensuring a more inclusive distribution of resources. Furthermore, the Ministry has introduced a mandatory tagging system for "climate-relevant" projects. By identifying these initiatives during the proposal stage, the government aims to streamline the creation of a prioritized climate change budget. This system will allow the state to more accurately track and manage the costs associated with environmental resilience and long-term sustainability in the face of rising sea levels. This budgeting process marks a transition toward more targeted, data-driven spending, blending traditional infrastructure needs with modern social and environmental imperatives.