
Maldives records MVR 1.4 billion budget surplus as expenditure declines
As a result of the lower spending levels, the total budget expenditure stood at MVR 21.1 billion, down 7.0 per cent from the same period last year.
The government of Maldives has recorded a budget surplus of MVR 1.4 billion as of 19 June 2025, driven by a 21.0 per cent decline in total expenditure compared to the same period last year, according to the Ministry of Finance’s Weekly Fiscal Development Report.
The report shows that total government expenditure stood at MVR 16.2 billion, reflecting a decrease from MVR 21.0 billion in the corresponding period of 2024. Recurrent expenditure dropped by 3.4 per cent, while capital expenditure saw a 70.1 per cent decline.
Of the recurrent expenditure, 58.7 per cent was allocated to administrative functions of government offices—a reduction of 8.6 per cent year-on-year. Spending on office supplies fell by 70.0 per cent, and expenses for repairs and maintenance decreased by 20.7 per cent. Expenditure on transport declined by 15.3 per cent, while allocations for aid and subsidies were reduced by 3.6 per cent.
Despite the reductions, expenditure on Arsendao increased by 1.4 per cent. Medical welfare spending dropped by 35.2 per cent. Funds disbursed as grants to local councils increased compared to the previous year. Additionally, government debt repayments rose by 169.5 per cent, and deposits into the Sovereign Development Fund increased by 45.6 per cent.
Capital expenditure totalled MVR 1.6 billion, including MVR 1.4 billion spent on infrastructure assets such as road construction, bridges, and airport development. This accounts for 13.0 per cent of the annual capital expenditure approved by Parliament.
The 2025 state budget allocates MVR 12.4 billion to the Public Sector Investment Programme (PSIP), of which MVR 1.6 billion has been spent so far. While a significant portion of last year’s PSIP expenditure went toward land reclamation and road projects, this year’s focus has shifted to projects addressing flood mitigation. A total of MVR 816.2 million has been spent on such initiatives, including completion works at Velana International Airport.
The government has also introduced measures to strengthen PSIP-related policy implementation, contributing to reduced expenditure on these programmes.
As a result of the lower spending levels, the total budget expenditure stood at MVR 21.1 billion, down 7.0 per cent from the same period last year, leading to a surplus of MVR 1.4 billion in the state budget.