The Finance Ministry of Maldives has projected that the government’s debt will rise to MVR 129 billion in the coming year. This estimation reflects a per capita debt level of 111 per cent.
In addition to this projection, the Finance Ministry has disclosed several challenges within the state’s fiscal approach. These challenges encompass unforeseen expenses throughout the year and excessive discretionary spending.
Economic obstacles and revenue difficulties are key impediments to the fiscal strategy. These challenges have also led to limitations on expenditure.
The Finance Ministry anticipates a gradual reduction in the per capita debt-to-GDP ratio, with debt expected to decrease to 86 per cent of GDP by 2027.
Previously, the World Bank had expressed concerns regarding the country’s economic resilience in the medium term, primarily due to the substantial government debt that must be repaid by 2026.