State Budget 2026: Allocation for SOEs lower by 88 percent

The proposed State Budget 2026 has an 88 percent lower allocation as capital for State Owned Enterprises (SOEs). 

As per the budget, MVR 2.47 billion will be spent as capital injections to SOEs by the end of the year. 

Last year, MVR 1.59 billion was spent for this purpose. 

This year, the highest amount of capital was issued to Tradenet. The budget states that MVR 612 million will be issued Tradenet this year. The second highest is STELCO with MVR 500 million, followed by Fahi Dhiriulhun Corporation with MVR 389 million. 

However, the proposed budget for next year has an allocation of MVR 314.9 million for SOEs, which is 12 percent of this year's allocation. 

Next year, the highest capital injection is allocated for Fahi Dhiriulhun Corporation, at over MVR 270 million. 

The total proposed budget for next year comes to MVR 64.2 billion, which is an 8 percent increase compared to this year. 

Projected revenue is at MVR 40.2 billion, while recurrent expenditure is quoted at MVR 39.9 billion, which is 62 percent of the total budget. This is also a 3.3 percent increase compared to this year's figures. Capital expenditure is included as MVR 9.3 billion. 

The budget deficit for next year is MVR 8.8 billion. 

The budget increase is largely due to debt obligations coming due next year. In April 2026, the government has to pay back a USD 500 million (MVR 7.7 billion) sukuk, while a USD 100 million (MVR 1.5 billion) bond taken in 2022 will also be due for repayment.