MVR 59.7 Billion Budget Presented for Next Year, Recurrent Expenditure Rises

Finance Minister Hassan Zareer presented a proposed budget of MVR 59.7 billion for next year to the People's Majlis today. This is approximately MVR 4 billion lower than the record MVR 64.2 billion budget passed for this year. Minister Zareer stated that this budget was prepared under government measures to reduce state expenditures and bring about financial reforms. Although the total budget amount has decreased, recurrent expenditures have increased. The budget proposes MVR 42.7 billion for recurrent expenses next year, which is an increase of MVR 0.2 billion compared to this year's proposal of MVR 42.5 billion. In 2025, MVR 37.4 billion was spent on recurrent expenses. According to the Finance Ministry's latest statistics, total state expenditure stands at MVR 36.39 billion as of October 15, an increase of 16.9 percent compared to last year, with recurrent expenditure amounting to MVR 31.35 billion. Key allocations in next year's budget include MVR 7.9 billion for salaries and wages, MVR 6.5 billion for allowances, MVR 2.6 billion for pensions, MVR 4.9 billion for loan service, and MVR 13.9 billion for government aid, donations, and subsidies. Minister Zareer said total state expenditure within this budget would be MVR 52.6 billion, comprising MVR 42.7 billion in recurrent expenses and MVR 9.9 billion in capital expenses, including MVR 8.2 billion for the Public Sector Investment Program. President Dr. Mohamed Muizzu has stated that the biggest priority in this year's budget will be given to the health sector, with MVR 10.8 billion earmarked for it. This contrasts with this year's budget, which gave highest priority to housing.