The Ministry of Finance has announced the sale of Treasury bills (T-bills) worth USD 214 million to fund government expenditures. It includes the issuance of four T-bills totaling the same amount.
The finance ministry sold a T-bill worth USD 129 million to be paid in 28 days, a T-bill worth USD 11 million to be paid in 98 days and a T-bill worth USD 48 million to paid in 196 days as well as a T-bill worth USD 30 million to be paid in 364 days. The ministry noted that the interest rate on the T-bills ranges from 3.50% to 4.60%.
T-bills are a short-term financial instrument. The finance ministry issues T-bills at discounted prices in the local currency, with the face value repayable at the end of the specified repayment period. Hence, this benefits the T-bill investors and not the state. The T-bills issued by the government is usually bought by the banks, Maldives Pension Administration Office, as well as public and private companies.
The government is also planning to implement revenue-boosting measures. These include adjusting airport taxes and fees, raising duties on unhealthy products, revising the GST Administrative Act to broaden the tax base, and revising green tax rates. The aim of the government is to make the 2027 budget a growth-oriented one, supported by these and other revenue-generating initiatives.