The Government has proposed an annual state budget of MVR 64.2 billion for 2026.
Finance Minister Moosa Zameer presented the proposed budget to the parliament at today's session.
The Minister said that this proposed budget includes MVR 9.3 billion worth of Sukuk and bonds repayments, and that without these repayments, the annual budget for 2026 would be MVR 55 billion.
He noted that, excluding the cost of repaying the securities and bonds inherited by the government, this is a smaller budget than the current 2025 budget.
Zameer said that this increase is due to higher debt repayment costs as the government is scheduled to repay a USD 500 million sukuk issued in 2021 and a USD 100 million bond issued earlier.
The Minister detailed that MVR 39.9 billion, or 62 percent of the budget, has been allocated for recurrent expenditure. He said that this includes the long-standing salary increase and harmonization of a large number of public servants.
Zameer said that tax revenue for 2026 is estimated at MVR 31.3 billion and that non-tax revenue is expected to hit MVR 8.7 billion. He further said that with an estimated MVR 373.6 million in grants, the total revenue and grants are expected to reach MVR 40.3 billion by 2026.
This is a 6.6 percent increase compared to the current estimate of total revenue and grants in 2025. The Minister stated that no changes in revenue policy are proposed to increase revenue in 2026.
However, he said that the proposed amendments to the tax laws to strengthen tax enforcement and revenue collection will be passed with this budget.
