Maldives 2025 Budget Aims to Strengthen Economy, Social Welfare, and National Resilience

In an address to the nation on Republic Day, President Dr. Mohamed Muizzu announced the proposed 2025 state budget, designed to prioritize economic welfare and social justice. Emphasizing reforms and sustainable growth, the President outlined key budgetary initiatives that target economic revitalization, social support, and financial stability.

President Muizzu shared that the proposed budget aligns with international financial institutions' guidance, featuring critical reforms to the subsidy system, national health insurance scheme (Aasandha), pension program, and state-owned enterprise adjustments. He noted these measures aim to uplift the most vulnerable groups in society, ensuring a fair and supportive economic environment for all Maldivians.

Highlighting the government’s second-highest budgetary focus on education and health, President Muizzu introduced a series of initiatives to bolster these sectors, including scholarships, training programs, and skill development projects. He also announced efforts to expand access to higher secondary education and increase the number of qualified local teachers to support future generations.

Addressing economic stability, President Muizzu pledged to refrain from printing currency, opting instead for sustainable growth strategies. He revealed that his administration has ceased deficit financing through loans, prioritizing economic resilience over short-term fixes.

The President also announced initiatives to diversify the economy, such as introducing international bunkering services, establishing the International Financing Services Authority, and launching a national digital currency. Additionally, he reiterated his commitment to free trade agreements with China and Türkiye, with plans to explore similar agreements with India and the UK, broadening economic opportunities for the Maldives.

To enhance fiscal stability, President Muizzu disclosed significant progress with the Sovereign Development Fund, which has grown from USD 2 million to USD 78 million since he assumed office, with a target of USD 100 million by year-end. He revealed that payments to Maldivian residents with outstanding claims under USD 324,254 have been fully settled. He also noted that the Sovereign Development Fund Act has been submitted to parliament, aiming to secure legal backing for the fund.

President Muizzu reaffirmed his administration's vision for a strong, prosperous, and sustainable Maldivian economy, committing to transparent, responsible governance for the future.