President Dr. Mohamed Muizzu has announced that the 2025 state budget has been proposed with a primary focus on promoting economic welfare and social justice. He made these remarks in his address to the nation during this year’s Republic Day ceremony.
Speaking at the event, President Dr. Muizzu stated that the budget for the upcoming year was finalised to align with recommendations from international financial institutions, incorporating several reforms to the subsidy-issuing system, the national health insurance scheme (Aasandha), the pension system, and necessary adjustments for state-owned enterprises. He noted that these initiatives aim to revitalise the economy and ensure that those in the greatest need or the most vulnerable receive the highest level of government support.
In his address, President Dr. Muizzu shared that the second-highest priority in next year’s budget is allocated to the education and health sectors. He highlighted several initiatives, including training programmes, skills development projects, scholarships, and loans through various schemes, all designed to advance higher education. The President also emphasised government efforts to increase access to higher secondary education and raise the number of local teachers.
President Dr. Muizzu underscored his administration’s ongoing efforts to drive the nation towards economic prosperity. He affirmed that printing currency is not a solution to economic challenges, pledging to refrain from currency printing under any circumstances. He further revealed that the current administration has ceased financing deficits through loans.
Additionally, President Dr. Muizzu highlighted new initiatives aimed at economic diversification and strengthening the nation’s financial system. These include the introduction of international bunkering services, the establishment of the International Financing Services Authority, and the launch of digital currency. The President also reiterated his commitment to implementing free trade agreements with China and Türkiye and expressed intentions to pursue similar agreements with India and the UK.
Furthermore, President Dr. Muizzu affirmed that efforts to attain the funds which the government was yet to receive, have led to reducing the state-debt. Noting that all outstanding bills towards residents, which did not exceed USD324,254 have been paid, he reiterated the government's vision of establishing a strong and prosperous economy. Additionally, the president disclosed that the Sovereign Development Fund has increased to USD78 million, since he took to office. The fund stood at USD two million when he took office. President Dr. Muizzu noted that the money deposited to the Sovereign Fund is money saved to pay off foreign loans of the country, revealing the government's overarching goal of raising the fund to USD 100 million by year-end.
The government has previously said that when the last government took office in 2018, the sovereign fund had more than USD500 million. However, by the end of the then government's tenure, the fund was close to empty. The administration has submitted the Sovereign Development Fund Act to the parliament to give legal authority to the fund. The bill has now been referred to the Parliamentary Committee on Public Accounts for further consideration.