2027 budget proposes over USD 259 million for social protection

miadhu
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2027 budget proposes over USD 259 million for social protection

The Government has proposed allocating more than USD 259.40 million to social protection programmes in the 2027 State Budget, an increase of 8.8 per cent compared with the current fiscal year.

The allocation reflects the Government’s focus on strengthening social welfare services and supporting the well-being and security of vulnerable groups across the country.

According to the Ministry of Finance, social protection programmes are implemented mainly through the National Social Protection Agency, Maldives Pension Administration Office, Ministry of Health, Family and Welfare, Ministry of Islamic Affairs and Endowments, and National Disaster Management Authority.

Pension payments account for the largest share of the sector’s expenditure. More than 80 per cent of social protection spending is directed towards basic pension payments for citizens aged 65 and above, particularly following the harmonisation of civil service salaries.

The proposed budget provides USD 135.54 million for services and support for senior citizens. A further USD 69.39 million is earmarked for patients and individuals requiring special assistance. This includes USD 16.32 million for medical treatment assistance and USD 53.53 million for support to persons with special needs.

The allocation for children and family assistance stands at USD 28.77 million, while USD 17.78 million has been set aside for socially isolated individuals. Another USD 7.77 million is proposed for wider social protection programmes.

Alongside recurrent welfare expenditure, the Public Sector Investment Programme will finance the development of facilities such as Amaan Hiya safe homes, specialised care centres for the elderly and shelters for victims of domestic violence.

The Government’s social policy also includes increased assistance for single-parent families, foster care arrangements and persons with disabilities. These measures are complemented by vocational training and employment initiatives aimed at reducing long-term dependency on welfare support.

The broader approach seeks to create more employment opportunities for Maldivians, encourage the participation of disadvantaged groups in the national workforce and gradually reduce reliance on expatriate labour, while promoting a more inclusive society.

Miadhu Online