Gov’t Prioritises Housing with Record MVR 4.8 Billion Allocation in 2025 Budget

The government has announced a significant focus on housing in its proposed budget for 2025, dedicating a record MVR 4.8 billion to address the country’s pressing housing needs.

Minister of Finance Moosa Zameer highlighted housing as a critical social issue. “In compiling the 2025 budget, the highest priority has been given to ensuring housing for Maldivians in line with the President’s vision,” he said.

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The proposed allocation includes MVR 1 billion for housing loans at a five percent interest rate, with these funds expected to support loans worth at least MVR 2 billion through banks. In addition, MVR 1.8 billion has been earmarked for Public Sector Investment Programme (PSIP) projects related to housing.

The overall budget for 2025 is set at MVR 56.6 billion, marking an increase of MVR 1.8 billion compared to this year’s budget, including supplementary allocations. Projected expenses stand at MVR 49.2 billion, comprising MVR 35.9 billion in recurrent expenditure and MVR 13.3 billion in capital expenditure. The government has also allocated MVR 3.9 billion for debt repayment.

Revenue and grants are forecasted at MVR 39.8 billion, with MVR 4.9 billion expected from revenue-enhancing measures, such as increased tobacco taxes, airport tax, TGST, and green tax. These fiscal adjustments aim to reduce the budget deficit to MVR 9.4 billion, the lowest in recent years.