Finance Ministry Projects Surplus Budget Proposal for 2028

Deputy Minister Ahmed Saaid announced the Finance Ministry’s intention to propose a surplus budget for the year 2028, emphasising the government’s commitment to managing expenses in line with state revenue.

Saaid disclosed that the state’s primary balance stands at a deficit of MVR 201 million (USD 13.35 million) after deducting all expenses from this year’s revenue. However, he highlighted a significant improvement from the previous year, where the deficit was recorded at MVR 2.6 billion (USD 168.61 million).

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He underscored the government’s focus on expenditure reduction, cautioning that failure to achieve this could necessitate a supplementary budget of MVR 10 billion (USD 648.51 million) by year-end.

Saaid warned against unchecked spending, noting that seeking funds from external sources could exacerbate current financial challenges.

Highlighting efforts to manage debt, Saaid disclosed that MVR 2.5 billion in loans have been repaid, including MVR 1.6 billion in interest accrued from previous borrowings.

To fund the state budget, the government has outlined plans to procure MVR 8.5 billion, including the issuance of a USD 50 million bond for budgetary support.