The government on Thursday presented its proposed budget for the upcoming financial year to Parliament, setting the figure at USD 4.2 billion.
While this figure represents a substantial increase over the current 2025 budget of USD 3.7 billion, President Dr Mohamed Muizzu, in a social media post asserted that the 2026 budget is fundamentally smaller and more fiscally prudent.
The President clarified his reasoning by separating operational spending from mandatory debt obligations. He explained that the true size of the 2026 budget stands at USD 3.6 billion when excluding the USD 603.1 million designated solely for the repayment of government securities due next year.
This adjusted figure, he argued, reflects a smaller operational expenditure compared to the current fiscal year.
The government further detailed that estimated total expenditure for the year is projected at USD 3.2 billion, against an anticipated total revenue and grants of USD 2.7 billion.