Parliament approves MVR 64.2 billion budget for next year

Parliament has approved a MVR 64.2 billion state budget for next year, with 74 votes in favour and 12 MDP members voting against.

While the overall figure remained unchanged, several reallocations were made at committee stage.

The parliament’s budget was increased by MVR 3.5 million, bringing its total to MVR 229 million, half of which is spent on salaries and allowances.

Next year’s budget includes MVR 18 billion in debt related payments. These include the USD 500 million sukuk issued in 2021 and the USD 100 million bond sold to the Abu Dhabi Fund in 2018, due for repayment in April. The euro bond repayment to the Abu Dhabi Fund has been deferred.

The state will require MVR 8.8 billion to finance the 2025 budget deficit, and MVR 26.3 billion in total financing when debt obligations are included.

The government forecasts 5.3 percent economic growth next year.