A total of USD 538.9 million has been earmarked for infrastructure development in the public social sectors in the proposed budget for next year.
These allocations cover housing, land reclamation, island accessibility, and other key development areas. The largest allocation is for housing, with USD 155.58 million set aside, covering Public Sector Infrastructure Programme (PSIP) allocation and other expenditure.
The next largest allocation is for transport and infrastructure development, with USD 149.23 million allocated for the sector.
PSIP budget breakdown:
• Social Housing – USD 64.86 million
• Bridges and Tunnels – USD 51.79 million
• Airports and Aviation – USD 35.06 million
• Roads and Highways – USD 36.05 million
• Hospitals – USD 27.91 million
• Land reclamation – USD 27.87 million
• Harbours – USD 25.52 million
• Water Systems – USD 22.52 million
• Shore protection – USD 14.18 million
• Urban Development – USD 5.84 million
• Public Transport – USD 5.79 million
• Sewerage – USD 4.29 million
Presenting the budget, Minister of Finance and Planning Moosa Zameer said that capital expenditure is expected to rise by 31.7 percent to USD 602.47 million compared with 2025. He noted that the rise reflects the continuation of this year’s PSIP policy into next year, alongside the implementation of new infrastructure development projects.
The total expenditure for the PSIP will be set at a level not exceeding 70 percent of the funds allocated from the domestic budget.
For the current year, a total of USD 797.92 million has been allocated for PSIP projects.