Finance Ministry to present 2027 state budget tomorrow

The Finance Ministry is scheduled to present the proposed state budget for 2027 to the Parliament on Thursday.

Concluding Wednesday’s sitting, Speaker Abdul Raheem Abdulla had announced that the Parliament will be holding a meeting on Thursday for the presentation of next year’s budget.

According to the agenda later published on the Parliament’s website, the sitting will begin at 01:30 pm.

The size of the proposed budget is unclear, as the Finance Ministry has not disclosed any information regarding next year’s budget.

The Maldives had passed a record high budget of MVR 64.2 billion for 2026, owing mainly to the staggering debt obligations of USD 1.1 billion which came due this year.

The country’s high debt had prompted global credit rating agencies to downgrade Maldives’ ratings last year.

However, the country rallied to repay major debt obligations this year, materially reducing its near-term default risks.

This includes the repayment of the USD 500 million sukuk in April, the settlement of the USD 400 million currency swap facility from the Reserve Bank of India (RBI), alongside securities investments from the State Bank of India (SBI) totaling USD 100 million in May and September, and the rollover of the USD 100 million Eurobond until 2031.

Fitch Ratings upgraded the Maldives' credit rating from 'CC' to 'CCC-' in June, and Moody’s followed suit earlier in October, raising the credit rating from Caa2 to Caa1 with a stable outlook.

According to Moody’s, the upgrade also reflects stronger foreign exchange inflows, and continued access to bilateral and multilateral financing.

However, while Moody’s cited a material reduction in the government's near-term default risk, the agency warned that the country continues to face persistent fiscal, external and government liquidity risks.