Budget records MVR 1.1 billion surplus amid decline in expenditure
As of last week, the state had spent MVR 13.7 billion.
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The state budget has recorded a surplus of MVR 1.1 billion as of 22 May 2025, with overall expenditure declining by 17.9 per cent compared to the same period last year, according to the Weekly Fiscal Development Report published by the Ministry of Finance.
As of last week, the state had spent MVR 13.7 billion. Recurrent expenditure dropped by 3.8 per cent, while capital expenditure declined by 64.2 per cent.
The report stated that 60.9 per cent of recurrent expenditure was directed towards administrative operations of state offices, which is 8.7 per cent lower than the corresponding period last year. Expenditure on office supplies fell by 70.3 per cent, while spending on repairs and maintenance declined by 27.1 per cent. Transport-related expenses also decreased by 15.7 per cent.
However, the report noted increases in expenditure for Aasandha, procurement of services, and loan-related payments compared to last year.
Capital expenditure totalled MVR 1.4 billion as of last week. Out of this, MVR 1.2 billion was spent on infrastructure assets, including roads, bridges and airports, accounting for 10.5 per cent of the amount allocated in the approved budget for the year.
The 2025 state budget allocates MVR 12.4 billion for the Public Sector Investment Programme (PSIP). So far, MVR 1.4 billion has been spent on PSIP projects this year. Unlike the same period last year, when a significant share of PSIP spending went to land reclamation and road development, a large proportion of this year’s PSIP expenditure has been directed towards projects addressing flood mitigation, with MVR 801.1 million allocated for this purpose.
The report also noted a reduction in overall PSIP expenditure this year, attributed to the government’s efforts to strengthen policy frameworks related to PSIP implementation.
