The People’s Majlis has approved the MVR 64.2 billion state budget proposed for 2026, marking the largest budget ever presented in Maldivian history.

The vote was held during Tuesday’s sitting of the People’s Majlis, where 74 of the 86 lawmakers who participated voted in favor, while 12 voted against the MVR 64.2 billion budget.

The proposed budget for next year amounts to MVR 64,202,565,720. Of this total, MVR 49.2 billion is allocated for expenditure, including MVR 39.9 billion for recurrent expenses and MVR 9.3 billion for capital expenditure.

In addition to this, MVR 12.9 billion is estimated for debt repayment and MVR 8.8 billion for covering the budget deficit. A total of MVR 26.2 billion in financing will be required to meet the expenditure outlined for next year.

The government has decided to draw from the Sovereign Development Fund for debt repayment. The fund currently holds USD 100 million (which is approximately MVR 1.5 billion) in cash, and an additional MVR 4.2 billion is set to be spent from it next year for debt repayment.

Government revenue for 2026 is estimated at MVR 40.4 billion, excluding grants. Of this, MVR 31.3 billion is expected from taxes, while non-tax revenue is projected at MVR 8.7 billion. Grants are estimated to total MVR 373.6 million.

Among the amendments approved by the Budget Review Committee, an additional MVR 3.5 million was allocated to the special budget of the parliament’s administration.

The Ministry of Finance and Planning also stated that, based on proposals from independent institutions, any institution facing challenges in fulfilling its legal responsibilities will be provided with the necessary funds by identifying space within the overall budget.