Ministry of Finance has revealed that the state budget 2025 aims to restore the fiscal and debt sustainability. This indication was made by the ministry in the Budget Position Report for next year's state budget.
The report details the budgetary framework, the reforms set for implementation, and the expected outcomes of these initiatives. The ministry acknowledged facing challenges due to delays in measures aimed at reducing the budget deficit, emphasising that the primary obstacle to advancing the government’s economic reform agenda has been the heightened risk associated with the national debt portfolio.
In an effort to reduce state expenditures and increase revenue, the government has introduced a series of measures. The report underscores that this is the first budget proposed under the current administration, aligning with the government's commitments and enabling the execution of its policies and economic reform agenda.
The 2025 state budget aims to ensure fiscal and debt sustainability by managing short-term loans, executing plans for refinancing and debt repayment, addressing the housing crisis, and enhancing living standards. Additionally, it seeks to mitigate macro-fiscal volatility by minimising external risks, while prioritising the support of vulnerable groups in society, diversifying the economy, and strengthening resilience.
The government has proposed a state budget worth USD 3.7 billion to the parliament, which includes USD 2.3 billion for recurrent expenditures and USD 862.3 million for capital expenditures. The government expects to receive USD 2.57 billion in donations and collect USD 428 million in savings due to stringent measures aimed at reducing state expenses.