Maldivian Democratic Party (MDP) President and former Foreign Minister Abdulla Shahid has sharply criticized the government’s proposed MVR 64.2 billion budget for 2026, describing it as “far from the basics of the economy and social realities.”
In a post on X, Shahid said the budget offers no hope of improving the lives of ordinary citizens, citing rising prices, stagnant business growth, and a lack of foreign aid. He noted that despite efforts to raise MVR 7 billion in budget support this year, the Maldives has not received “a single penny” from foreign markets or international partners, calling it a failure of both economic and foreign policy.
“The development of Maldives will be lost next year as well as this year,” Shahid warned.
The 2026 budget is MVR 7.6 billion higher than the current MVR 56.6 billion budget, driven largely by record debt repayments. According to Finance Minister Moosa Zameer, the government will need to spend USD 1.1 billion on debt servicing next year alone.
Presenting the budget to Parliament, Zameer said the plan includes measures to restore fiscal and debt sustainability, and aims to deliver long-term solutions in health, education, and energy. He also said the budget would “bring real color” to national development goals.
The government had planned to raise MVR 7 billion in external budget support this year. However, so far into the PNC administration, it has failed to secure even a single rufiyaa from the market or any bilateral partner. This failure reflects both an economic policy collapse and…
— Abdulla Shahid (@abdulla_shahid) October 30, 2025
The government plans to raise MVR 16.8 billion through foreign loans, bond and sukuk sales, and multilateral or bilateral financing.
However, critics point to unfulfilled promises in the current budget. Of the MVR 7.7 billion in projected savings from fiscal reforms, none have been implemented. Similarly, only MVR 270 million of the MVR 2.59 billion earmarked for free aid has been received as of October 23.
President Dr Mohamed Muizzu has declared health as the top priority in next year’s budget. This year’s budget prioritized housing, but figures show that only nine percent of the allocated MVR 1.8 billion for housing projects has been spent so far.