Budget records MVR 1.1 billion surplus as expenditure declines
Total expenditure by the government stood at MVR 15.6 billion.
The overall balance of the state budget reached a surplus of MVR 1.1 billion as of 5 June 2025, according to the Weekly Fiscal Development Report released by the Ministry of Finance. The report shows a 22.1 per cent decline in state expenditure compared to the same period last year.
Total expenditure by the government stood at MVR 15.6 billion. Recurrent expenditure declined by 4.4 per cent, while capital expenditure decreased by 71.8 per cent.
Of the recurrent expenditure, 57.4 per cent was allocated to administrative operations of government offices, reflecting a 10.3 per cent decrease compared to the same period last year. Spending on office supplies fell by 71.8 per cent and expenditure on repairs and maintenance declined by 24.4 per cent. Transport-related expenditure dropped by 16.6 per cent, and spending on subsidies decreased by 21.8 per cent.
Expenditure on Arsendao increased by 5.9 per cent, while spending on medical welfare declined by 36.6 per cent. Debt servicing costs rose by 167.2 per cent compared to the previous year, and deposits to the Sovereign Development Fund increased by 46.7 per cent.
Capital expenditure totalled MVR 1.5 billion, of which MVR 1.3 billion was allocated to infrastructure development, including roads, bridges, and airport projects. This accounts for 11.2 per cent of the capital budget approved by Parliament for the year.
The 2025 state budget allocated MVR 12.4 billion to the Public Sector Investment Programme (PSIP). As of early June, MVR 1.5 billion has been spent under PSIP. While last year’s PSIP spending focused on land reclamation and road construction, this year’s spending has shifted toward flood mitigation initiatives, with MVR 814.5 million directed to related projects. Concurrently, the government’s effort to review and revise PSIP-related policies has contributed to a reduction in overall programme expenditure.
The cumulative government expenditure by 5 June 2025 stood at MVR 20.5 billion, marking a 7.8 per cent decline compared to the same period last year. The resulting budget surplus of MVR 1.1 billion reflects the impact of reduced recurrent and capital expenditures during the period.
