Maldives budget records MVR 1.2 billion surplus
As of last week, total government expenditure stood at MVR 15.3 billion.
The state budget recorded a surplus of MVR 1.2 billion as of 29 May 2025, according to the Weekly Fiscal Development Report issued by the Ministry of Finance. The report attributes the surplus to a 16.3 per cent reduction in total expenditure compared to the same period last year.
As of last week, total government expenditure stood at MVR 15.3 billion. Recurrent expenditure decreased by 2.0 per cent, while capital expenditure declined by 65.5 per cent.
Of the recurrent expenditure, 57.1 per cent was allocated to administrative operations of government offices. This is a decrease of 6.8 per cent from the same period in 2024. Spending on office supplies fell by 69.6 per cent, and repair and maintenance expenses declined by 24.1 per cent. Transport-related expenditure decreased by 14.6 per cent, while subsidy spending saw a 24.4 per cent reduction.
Despite reductions in several categories, the government increased spending on service delivery items, loan repayments, and contributions to the Sovereign Development Fund. Loan repayment commitments rose by 151.8 per cent, and deposits to the Sovereign Development Fund increased by 47.1 per cent compared to the previous year.
Capital expenditure reached MVR 1.4 billion, with MVR 1.2 billion allocated to infrastructure assets such as roads, bridges, and airports. This accounts for 10.8 per cent of the total capital expenditure estimate approved by Parliament for 2025.
The budget allocated MVR 12.4 billion for the Public Sector Investment Programme (PSIP). So far this year, MVR 1.4 billion has been spent under PSIP. While last year’s PSIP expenditure focused on land reclamation and road development, this year’s spending has shifted towards projects aimed at mitigating flood shortages. A total of MVR 811.1 million has been spent on such projects in 2025. The report also notes a reduction in overall PSIP expenditure, attributed to efforts to strengthen policies related to the programme.
By the end of last week, total state expenditure stood at MVR 19.8 billion, representing a 3.0 per cent decrease from the same period in 2024. With the decrease in both recurrent and capital expenditures, the overall budget balance remains in surplus at MVR 1.2 billion.
