Parliament Concludes Debate on 2025 Budget

The debate on the Maldives’ 2025 budget, which began last Tuesday, concluded yesterday in Parliament. The budget, totalling MVR 56.6 billion, underwent a multi-stage review before being presented.

The total expenditure for 2025 is set at MVR 49.2 billion, with recurrent expenses allocated at MVR 35.9 billion and capital expenditure budgeted at MVR 13.3 billion. Revenue and grants are estimated at MVR 39.8 billion, including MVR 2.5 billion in foreign aid.

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One notable aspect of the budget is its deficit of MVR 9.4 billion, the lowest in recent history. This deficit represents 7.9% of the country’s GDP. The Finance Ministry attributed the reduced deficit to fiscal reform measures totalling MVR 11.5 billion.

Subsidy allocations have been reduced by MVR 3 billion compared to this year, totalling MVR 7.9 billion. Despite this reduction, the budget prioritises housing and development, with MVR 1.5 billion earmarked for housing projects—reported as the highest allocation for housing in the nation’s history.

Public Sector Investment Programme (PSIP) projects will receive MVR 12.4 billion, the largest allocation for new projects in recent years. These initiatives are distributed across the country, with President Mohamed Muizzu describing the budget as heralding a “golden age of housing.”

The opposition, however, raised concerns over the lack of project details, criticising the government for insufficient clarity. In response, the administration stated that all projects will be implemented only after Cabinet approval and emphasised the budget’s focus on public welfare.

During the parliamentary debate, Ihavandhoo MP Ahmed Naseer, a member of the ruling party, highlighted public frustration over perceived delays in development projects. He urged the government to better communicate its efforts, suggesting television and radio broadcasts to inform citizens about ongoing initiatives.

Additionally, local councils expressed dissatisfaction with the reduced grants allocated to them, voicing concerns over potential limitations to grassroots development.

The budget presentation by Finance Minister Moosa Zameer came shortly after Parliament approved a supplementary budget of MVR 5.1 billion for 2024. This was in addition to the original allocation of MVR 49.8 billion for the year. The Finance Ministry noted that 76% of the supplementary budget has already been utilised.

Although the debate has concluded, the 2025 budget is still under scrutiny in parliamentary committees before final approval. As the PNC-led government marks its first year, public sentiment remains mixed, with many citizens expressing frustration despite the government’s assurances of progress.