Committee Endorses MVR 64.2 billion State Budget Without Amendments

The Parliament’s Budget Review Committee has endorsed the proposed MVR 64.2 billion state budget for 2026 without making any changes, despite calls from several institutions and opposition MPs for revisions.

North Thinadhoo MP Saudulla Hilmy proposed to approve the budget as submitted by the government. The motion was passed with 10 votes in favour and four against.

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Committee chair and Eydhafushi MP Ahmed Saleem said a number of state institutions had requested increases to their allocations. However, he said the Finance Ministry had made it clear that there was no room to expand the overall budget.

Saleem noted that although the ministry had resisted upward revisions, the MVR 3.5 million additionally required for Parliament would be arranged within the budget framework. Finance Ministry officials told the committee earlier that while the total budget ceiling could not be raised, funding for some institutions could be managed through a special budget.

Two amendments proposed by opposition MPs were rejected by the committee’s ruling party majority.

Maldivian Democratic Party (MDP) parliamentary group leader and South Hithadhoo MP Ibrahim Nazil proposed increasing subsidies for fishermen and farmers, arguing that allocations in the 2026 budget were being reduced compared with this year. While MVR 341 million was allocated for fishermen’s subsidies this year, the proposed 2026 budget sets aside MVR 280 million.

Nazil’s proposal called for a special allocation of MVR 120 million for skipjack tuna fishermen, MVR 165 million for yellowfin tuna fishermen, and MVR 50 million for farmers to support food security. The amendment was rejected.

Hanimaadhoo MP Abdul Gafoor Moosa separately proposed incorporating recommendations made by Maldives Monetary Authority (MMA) Governor Ahmed Munawar into the budget. This proposal was also defeated by the ruling coalition members on the committee.

Governor Munawar, in earlier testimony to the committee, had raised concerns over some of the government’s planned policies for next year. He warned that if public sector salaries are increased across the board at the same time in 2026, it could create difficulties in maintaining the official dollar exchange rate.

Munawar said that salary harmonisation alone would add about MVR 3 billion to the budget. He also highlighted structural constraints on foreign currency inflows, stating that the MMA mainly receives foreign currency through tax revenue collected by the Maldives Inland Revenue Authority (MIRA) and under the new law mandating the sale of foreign currency. He added that foreign aid inflows over the past two years have been very low.

Under the proposed 2026 budget, total state expenditure is estimated at MVR 57 billion, while revenue is projected at MVR 43 billion. The government has indicated that around MVR 14 billion will need to be raised next year to cover the financing gap. The total budget figure of MVR 64.2 billion includes other fiscal obligations beyond recurrent and capital expenditure.

The parliamentary debate on the budget concluded during yesterday’s sitting. When the committee report is submitted to the full chamber, each MP is to be given an additional seven minutes to speak on the report before the budget is put to a final vote.