Maldives Budget Deficit Projected to Reach MVR 9.4 Billion in 2027, Says Finance Minister

Finance Minister Hassan Zareer announced on Monday that the Maldives budget deficit is projected to reach 9.4 billion rufiyaa in 2027, representing 7.3 percent of the country's Gross Domestic Product (GDP). Presenting the government's budget projections to the People's Majlis, Minister Zareer provided a detailed outlook on the nation's fiscal health. The minister stated that by the end of this year, the overall government budget deficit is projected to be 7.6 billion rufiyaa, which equates to 6.2 percent of GDP. Looking ahead, he said the primary balance relative to GDP is projected to be 2.5 percent in 2026 and 3.4 percent in 2027. On the issue of government debt, Minister Zareer noted that the government's direct debt is estimated to stand at 117 percent of GDP in 2027. This figure is expected to drop to 116.3 percent in 2028, with a target to reduce debt to 107.9 percent by 2029. According to the minister, strict controls currently being implemented in the execution of the government budget will continue to be maintained next year. He credited these measures for ensuring that the current year's budget deficit will remain at the approved level, despite significant shocks arising from changing international trends.