The Ministry of Finance and Public Enterprises has opened the process for government ministries to propose new initiatives for inclusion in the 2027–2029 programme budget, allocating approximately USD 162.1 million for development projects.
According to a circular issued by the Ministry, the largest portion of this funding is directed toward infrastructure development, with around USD 129.7 million specifically set aside for this sector. An additional USD 32.4 million has been capped for various other items under the New Policy Initiative. Government ministries have until August 18 to submit their proposals for inclusion in the three-year cycle.
The Ministry emphasised that all new budget items must align strictly with the government’s manifesto and the specific pledges of President Dr Mohamed Muizzu. Additionally, the selection process will prioritise projects mandated by law or necessitated by existing international and domestic agreements.
In a move toward modernising fiscal policy, the 2027-2029 budget will pilot "Gender Equity and Social Inclusion" (GESI) budgeting. This initiative aims to track the impact of state spending on social equality.
Additionally, the Ministry has mandated that state agencies identify "climate-relevant" projects. This tagging system is designed to streamline the development of a prioritised climate change budget and help the government accurately identify costs associated with environmental resilience and sustainability.