Former Finance Minister Ibrahim Ameer has warned on Thursday that the proposed 2026 state budget will significantly increase national debt, citing rising expenditure, missed revenue targets, and unimplemented fiscal reforms.
Speaking at a press conference held by the Maldivian Democratic Party (MDP) Economic Committee on Thursday, Ameer said the budget projects expenditure exceeding revenue, forcing the government to seek substantial financing. He described the budget as deficit-driven and debt-increasing.
According to Ameer, spending will rise by 11.1 percent, with recurrent expenditure increasing by MVR 2.2 billion, largely due to salary costs. He noted that revenue is expected to grow by just 6.6 percent, which he said would not improve financial sustainability.
Ameer also highlighted that import duty collections fell short of estimates, and that despite tax hikes, revenue targets were not met. He criticized the government for failing to pay contractors and accumulating unpaid bills, while continuing to spend heavily on salaries.
A parliamentarian browses the 2026 budget book on October 30, 2025. (Photo/People's Majlis)
The government has proposed a record budget of MVR 64.2 billion for 2025, up from MVR 56.6 billion this year. Ameer said the increase is driven by the need to repay USD 1.1 billion in debt next year alone.
He further pointed out that MVR 7.7 billion in savings from fiscal reform measures included in this year’s budget have not been implemented. These reforms were meant to improve financial discipline, but Ameer said the government has instead made new promises that increase costs.
President Dr. Mohamed Muizzu has announced that health will be the top priority in next year’s budget, while this year’s budget focused on housing. However, Ameer noted that only nine percent of the MVR 1.8 billion allocated for housing projects has been spent so far.