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Finance Minister presents state budget of 2025, worth USD 3.7 billion

Minister of Finance Moosa Zameer has presented the state budget 2025, worth USD 3.7 billion, to the Parliament.

The budget, amounting to USD 3,673,644,673, anticipates USD 3.2 billion in expenses, which includes USD 2.3 billion for recurrent expenditures and USD 862.3 million for capital expenditures. An allocation of USD 804 million is designated for the Public Sector Investment Programme (PSIP) projects. Minister Zameer noted that the government expects to receive USD 2.57 billion in donations. He further confirmed that USD 428 million in savings is anticipated due to stringent measures aimed at reducing state expenses.

The budget was developed with the understanding that significant reforms will be implemented throughout 2025. The proposed reforms include:

- Transitioning from a subsidy system that grants subsidies to any requester to one that provides assistance only to those in need.
- Strengthening and ensuring the sustainability of the Aasandha Health Insurance system.
- Hedging against fiscal and external sector risks related to fluctuations in oil prices.
- Revising the pension scheme to eliminate wasteful expenditures.
- Reforming state-owned enterprises (SOEs).

The government asserts that these reforms will be effectively executed alongside the next year's budget, emphasising that the 2025 budget is responsible and represents the lowest deficit in recent history. The administration aims to maintain this momentum and reduce debt to sustainable levels.