Government agencies have been invited to prepare and submit their medium-term budget estimates to the Ministry of Finance and Development Planning before the 28th of next month. Under Chapter 4 of the Public Finance Act, the Ministry of Finance must prepare the annual state budget and submit it to the People’s Majlis two months before the start of the fiscal year for which the budget is being prepared. In circulars signed and issued by the Minister of Finance and Development Planning, Moosa Zameer, agencies have been invited to submit baseline budget estimates for 2026 to 2028, budgets for new projects, and estimated budgets for councils.
The Ministry of Finance has already begun the budget preparation process. As part of the first phase of budget formulation, various agencies have now been invited to submit their medium-term budget estimates for 2026 to 2028.
The Ministry of Finance has issued three separate circulars for budget preparation and submission. According to the Ministry, new activities and projects included in the 2026-2028 medium-term budget estimates should be projects that will be implemented during this period. When submitting this part of the budget, the circular states that the economic, social, or other benefits of these projects should be included. Additionally, the circular instructs agencies to propose ways to increase state revenue.
In addition to the estimated budget for new projects, agencies have been instructed to submit a baseline budget covering the estimated costs of continuing current projects and activities at their present level or scope. When submitting this budget, agencies are required to provide details of salaries and operational costs as additional information. Government agencies are invited to submit details of new activities and projects, as well as baseline budget details, before the 28th of next month.
Furthermore, the Ministry of Finance has invited councils to prepare and submit their medium-term budgets. This is the budget that councils must prepare and submit in accordance with the principles for determining grants to councils, preparing council budgets, and implementing budgets.
Details of the budget to be submitted by councils include:
• State block grants
• Conditional grants from government agencies
• Council trust funds
• Additional revenue for councils
According to the circular sent specifically to councils by the Ministry of Finance, councils must share their medium-term budget details with the Ministry before September 18th. According to the timeline currently set by the Ministry of Finance for budget work, the total budget will be submitted to the Cabinet for approval between October 19th and October 23rd. The budget is scheduled to be submitted to the People’s Majlis on October 30th People’s Majlis on October 30th.
