Caspian Energy (CE): Honourable Minister, what are the government’s top fiscal priorities for the Maldives in the coming year?

Moosa Zameer, Minister of Finance and Planning of the Republic of Maldives:  A robust fiscal performance had initially been envisaged for the year 2026, with sustained growth in the tourism and related sectors and a scaled-up investment drive in energy security, transport and connectivity, fisheries, and the health sector. These investments, coupled with the repayment of the Sukuk, were formulated with the intention to reduce public debt-to-GDP in the medium-term. This was the vision underpinning the budget approved by Parliament last year, based on the economic reality at that point in time.

However, global economic conditions have since deteriorated sharply following the escalation of conflict in the Middle East. Rising energy prices and disruptions to global flight movement and shipping routes are expected to impose sustained economic costs, with impacts that may take time to fully unwind.

In the face of these challenges, the Government of the Maldives remains resolute in its priorities. We will honor our debt obligations and ensure the uninterrupted provision of essential goods and services to our people. While higher oil prices will place pressure on public finances, we are actively reallocating budgetary resources and seeking to attain critical financing to safeguard energy security, the provision of essential public services and macroeconomic stability.

At the same time, the Government will adopt a prudent and disciplined approach to public investment, prioritizing projects based on economic viability and national necessity. Given the Maldives’ geographic dispersion and acute vulnerability to climate change, critical investments, particularly in coastal protection, water, and sanitation, cannot be and ought not be deferred.

The Government remains committed to navigating these challenges while maintaining macroeconomic, and long-term fiscal and debt sustainability.