Three-Year Medium-Term Budget Planning Begins

MALE’ — The Ministry of Finance and Treasury has officially commenced the formulation of the country’s medium-term budget, covering the fiscal cycle from 2027 through 2029.

In a circular issued to all state institutions, the Ministry has mandated the submission of “baseline budgets” to serve as the foundation for the upcoming three-year fiscal strategy. This preparatory phase requires government offices to submit detailed information regarding all planned projects and new initiatives by the deadline of 2:00 PM on 20 August 2026.

The Ministry clarified that the baseline budget represents the estimated expenditure required to maintain existing government activities and projects at their current scope and service level. It explicitly excludes:

• New, planned activities or projects.
• Additional services or procurement requirements.
• New staffing or recruitment plans.

The Ministry underscored that failure to submit the required documentation by the stipulated deadline would grant the Ministry the authority to prepare the respective institution’s budget at its own discretion.

The government has outlined a clear strategic vision for this medium-term budget, focusing on fiscal discipline and sustainable economic growth. Key objectives include:

• Debt Sustainability: Ensuring long-term fiscal stability and reducing debt-servicing costs relative to national revenue, with a specific focus on keeping the debt-to-GDP ratio on a downward trajectory.
• Operational Efficiency: Optimising state expenditure to ensure maximum return on investment and high-quality service delivery.
• Economic Resilience: Encouraging economic diversification and facilitating new growth activities to strengthen the nation against external shocks.
• Decentralisation and Social Welfare: Expanding regional development while ensuring that social protection programmes are better targeted toward the most vulnerable members of the community.
• Climate Preparedness: Mitigating the fiscal risks associated with climate change and natural disasters.

As the administration moves toward the 2027 fiscal year, the emphasis on this medium-term approach signals a shift toward more rigorous financial planning, aimed at balancing the immediate needs of the public with the long-term imperative of national economic security.