Parliament Approves MVR 64.2 Billion State Budget for 2026

The Parliament of the Maldives has endorsed the government’s proposed MVR 64.2 billion state budget for 2026 on Tuesday. The spending plan was approved with 74 MPs voting in favour and 12 voting against.

Although the total budget envelope remained unchanged, adjustments were made during the committee stage, including reallocations to certain constituencies. A further MVR 3.5 million was added to the parliament’s own budget.

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Opposition MPs from the Maldivian Democratic Party (MDP), who opposed the bill, criticised the ruling coalition for refusing to incorporate recommendations submitted by various state authorities. According to the budget review committee, 20 independent bodies collectively requested an additional MVR 607 million. None of those requests were accommodated. 

The government’s proposed figure represents an MVR 8 billion rise from this year’s MVR 56.5 billion budget. The government forecasts project revenue of MVR 40.2 billion in 2026, alongside economic growth of 5.3 percent.

Recurrent expenditure is set at MVR 39.9 billion—62 percent of total spending—marking a 3.3 percent increase compared with the current year. Government salaries will reach MVR 17 billion, while capital expenditure stands at MVR 9.3 billion.

The budget deficit is expected to reach MVR 8.8 billion. Officials attribute the increased expenditure largely to looming debt repayments. In April 2026, the government must settle USD 500 million (MVR 7.7 billion) in external obligations, in addition to repaying a USD 100 million (MVR 1.5 billion) bond issued in 2022 under former president Ibrahim Mohamed Solih. Total debt-related spending next year is projected at MVR 18 billion.

During the parliamentary debate, MPs from the ruling People’s National Congress (PNC) commended the government for managing the economy while preparing to service substantial debts they claim were accumulated under previous administrations. They accused the former MDP government of misusing the budgets and failing to use its five-year mandate effectively.

Opposition MPs, however, argued that the current administration has underperformed during its two years in office. They accused the government of stalling numerous projects initiated under the MDP-led administration and failing to deliver on key development promises.