Finance Minister Moosa Zameer has submitted a supplementary budget of USD 332 million to the Parliament to address additional government expenditures. This request, which includes USD 97.3 million for operational costs and USD 227 million earmarked for capital projects, aims to cover state expenses that the existing budget, approved by the prior administration, could not accommodate for planned economic reforms.
Minister Zameer noted that the previous administration’s budget did not account for the reforms and initiatives envisioned by the current government. To support President Dr. Mohamed Muizzu’s development goals, this supplementary budget will help bridge shortfalls due to unexpected costs, including increased medical expenses, additional subsidies, and a rise in student loans. A significant portion, USD 129.7 million, is allocated to ensure uninterrupted funding for Public Sector Investment Programme (PSIP) projects.
Further allocations include USD 28.6 million for state-owned enterprises (SOEs), USD 42.2 million for contingency funds, USD 29.7 million to expand student loan funding, USD 13 million for medical supplies, USD 17 million for medical treatment support, USD 66.1 million for subsidies, and USD 1.5 million for salaries.
The supplementary budget will be funded through a mix of project loans, internal borrowing, and the sale of Treasury bills. This includes USD 64 million from international sources and USD 194 million from domestic loans. If passed, it will increase the total state budget by an additional USD 3.6 billion for the fiscal year. Last year’s supplementary budget, valued at USD 421 million, provided a similar boost to cover essential state expenses.
