Finance Ministry proposes MVR 8.2 billion budget amendment for 2027 to fund new public works

The Ministry of Finance has submitted a proposal to the People’s Majlis to amend the 2027 national budget, seeking an additional MVR 8.2 billion (approximately USD 530 million) to finance a range of public‑sector projects.

Scope of the proposed amendment

• Allocation of MVR 5 billion for the construction and upgrading of public infrastructure, including roads, bridges and utilities.
• MVR 1.4 billion earmarked for a new public‑sector loan facility, intended to support development projects and improve fiscal liquidity.
• MVR 1.8 billion designated for the purchase of 60 hectares of land for future government use and the acquisition of 5 hectares of private land for public projects.
• Additional funding for the Ministry’s logistical and administrative needs, including an estimated MVR 390 000 for contingent expenses.

Legislative process and timeline

The amendment will be debated in the Majlis before the 11 November 2027 deadline for budget approval. If passed, the extra allocation will be reflected in the final budget documents and will be subject to audit by the Auditor General’s office.

The Ministry has outlined that the amendment will also address pending liabilities arising from the 2026 fiscal year, ensuring that the government can meet its obligations without resorting to ad‑hoc borrowing.

Implications for the public sector

Officials anticipate that the increased spending will accelerate ongoing infrastructure projects and create a cushion for unforeseen expenditures. The public‑sector loan facility is expected to provide lower‑cost financing for state‑owned enterprises, reducing reliance on external commercial lenders.

Stakeholders have been urged to monitor the amendment’s progress, as its approval will set the fiscal tone for the remainder of the 2027 financial year.