Umar: Maldives’ high debt stems from wasteful spending by various administrations

Former Home Minister Umar Naseer, on Thursday, said Maldives became the country with the highest debt-to-Gross Domestic Product (GDP) ratio because of wasteful expenditure and corruption-prone governance by previous administrations.

According to the latest International Monetary Fund (IMF) report, the Maldives currently records the highest debt-to-GDP ratio in the South Asian region, with public debt standing at 125.4 percent of GDP.

In a post on X referencing these figures, Umar said the country’s fiscal position is the result of 18 years of excessive spending and systemic corruption under successive ruling parties.

ދެކުނު އޭޝިޔާ ޤައުމު ތަކުގެ ތެރެއިން އުފެއްދުންތެރިކަމުގެ ނިސްބަތުން އެންމެ ދަރަނި ބޮޑު ޤައުމަކަށް ރާއްޖެވީ ސިޔާސީ ޕާޓީ ތަކުން، ވޭތުވި 18 އަހަރު ހިންގި ޙަރަދުބޮޑު، އިސްރާފު ބޮޑު، ކޮރަޕްޝަންބޮޑު ސަރުކާރު ތަކުގެ ސަބަބުން. pic.twitter.com/CQGTRpWgR6

— Umar Naseer (@UmarNaseerMV) June 25, 2026

The IMF report further shows Bhutan as the second most indebted country in the region, with a debt-to-GDP ratio of 103.6 percent. India, the region’s largest economy, records a debt ratio of 84.1 percent, while Pakistan stands at 72.8 percent amid ongoing economic pressures. Nepal’s debt ratio is 48.1 percent, and Bangladesh has the lowest level in South Asia at 42 percent of GDP.

The Maldives’ current debt level is approximately three times higher than that of Bangladesh, underscoring concerns over fiscal sustainability and the need for stronger budgetary discipline. The country’s comparatively high debt burden remains significantly above its regional peers, highlighting calls for urgent fiscal reform.

The government has passed a record state budget for the current year, largely driven by the need to meet debt repayment obligations amounting to USD 1.1 billion. According to the Finance Ministry, MVR 8.7 billion has already been spent on loan repayments as of May 14^th.