President Dr Mohamed Muizzu has said the main objective of the 2027 state budget is to complete and hand over at least 70 per cent of projects already underway.

Speaking on the sixth episode of Public Service Media’s (PSM) Nation Chat podcast, the President said the budget for next year is scheduled to be presented on October 29. He noted that priority has been given to completing hospitals and schools, which he described as essential services for the public.

President Muizzu said that when the current administration took office, the country’s economy was on the brink of default. He said the government’s initial priority was to steer the country away from that risk. As a result, gross and usable foreign reserves have increased to record levels since the beginning of this year, he stated.

The President added that the government has placed significant emphasis on reducing state expenditure and lowering the budget deficit and national debt. Measures are also being implemented to identify new revenue sources and strengthen fiscal responsibility.

Addressing concerns about government projects increasing public debt, President Muizzu said the government’s initiatives would not necessarily add to the debt burden. He cited the Rasmalé project as an example, stating that its investment would be funded through future revenue and would not require the government to take on additional loans or place an extra burden on the state budget.

The President also discussed the impact of international developments on the Maldivian economy. He acknowledged that the conflict in the Middle East had adversely affected tourism and tax revenue, but said the government was managing these challenges while continuing to implement projects within the available budget.

He reiterated that efforts to reduce government spending, identify additional revenue sources and bring down the budget deficit and debt remain key priorities.