Will propose a surplus budget for 2028: Finance Ministry

Finance Ministry has said that the in 2028, the government will propose a surplus budget.

Speaking at the media briefing held this week, Deputy Minister Ahmed Saaid said that the government's biggest goal is to manage expenses from the state's revenue.

He also revealed that the state's primary balance is at a negative MVR 201 million (USD 13.35 million) after removing all expenses from the revenue generated so far this year. However, this amount was at MVR 2.6 billion (USD 168.61 million) last year, he said.

"The president notified the Finance Ministry to submit an economy management plan. That plan has now been submitted, and the president has provided instructions to propose a surplus budget in 2028 and to do it in a way the improve the debt stock as well," Saaid revealed.

He went on to say that while the government prioritises lowering its expenditure, a supplementary budget of MVR 10 billion (USD 648.51 million) would have to be presented to the parliament at the end of the year if the government fails to reduce costs.

"This is [because] our models show that MVR 60 billion will be spent. While the budget shows MVR 17 billion as unmet finance, it will cause further difficulties for the people if this amount increases to 25 billion," he added.

Saaid said that if spending continues with no regard for the country's financial situation, those funds would have to be requested from other countries, and that this would also further exacerbate the current issues.

"While the overall balance is at MVR 1.8 billion in deficit by May [of this year], this amount was at MVR 4.5 billion last year. From year to year, this is an improvement of MVR 2.7 billion," he added.

He further added that the government is also working on prioritising areas of reducing cost, and has already paid off MVR 2.5 billion in loans, out of which MVR 1.6 billion was interest incurred for previous loans.

The government has currently announced to source MVR 8.5 billion required for the state budget, and has also included the sale of a USD 50 million bond for budget financing.