Minister of Finance Moosa Zameer has revealed that the state budget for 2025 will focus on reducing expenditures rather than generating revenue.
Proposing the budget to the Parliament, Minister Zameer stated that government expenditure in recent years have alarmingly increased, in the name of expanding the economy and providing essential services to residents. He pointed out that the budget five years ago, which was USD 1.8 billion, has risen to USD 3.3 billion in 2023, resulting in state debt reaching 124% of GDP.
Addressing Parliament, Minister Zameer emphasised the need for the current administration to make concerted efforts to restart its fiscal approach. He highlighted the necessity of addressing the systemic issues that have arisen to achieve an independent, just, prosperous, and secure lifestyle for residents.
The government has set an overarching goal of raising GDP per capita to USD 10 billion by 2028. Minister Zameer further outlined the administration's aim to reform the economy and transform the northern and southern regions of the country into key economic hubs by the end of this presidential term.
Additionally, Minister Zameer stated that the government seeks to reduce reliance on imported essential goods and services while transitioning the Maldives to generate electricity primarily from renewable energy sources. The government also prioritises developing the skills of the population, introducing innovative products and services to the international market, and creating educational and business opportunities targeting women and children.