Maldives records MVR 627 million budget surplus as expenditure falls by 17.8%
Total state expenditure as of last week stood at MVR 22.6 billion—6.4 per cent lower than in the same period last year.
The state recorded a budget surplus of MVR 627 million as of 26 June 2025, following a 17.8 per cent decline in total expenditure compared to the same period last year, according to the Ministry of Finance’s Weekly Fiscal Development Report.
As of last week, recurrent expenditure fell by 2.0 per cent, while capital expenditure dropped by 64.3 per cent.
A breakdown of recurrent expenditure shows that 55.7 per cent was allocated to administrative operations of government offices, which marks an 8.9 per cent decrease from last year. Expenditure on office supplies declined by 68.3 per cent, and repairs and maintenance by 17.6 per cent. Spending on transportation also fell by 12.3 per cent, contributing to a 5.6 per cent reduction in total outlays for state aid and subsidies.
In contrast, expenditure on services increased by 30.0 per cent and spending under the category of Aasandha rose by 1.9 per cent. Medical welfare payments declined by 33.3 per cent. However, payments on public debt increased by 81.9 per cent, and deposits to the Sovereign Development Fund rose by 60.1 per cent compared to the same period in 2024.
Capital expenditure totalled MVR 2.0 billion as of last week. Of this, MVR 1.7 billion was spent on infrastructure projects, including road construction, bridges, and airport development, accounting for 15.2 per cent of the Parliament-approved budget for the year.
The 2025 state budget allocated MVR 12.4 billion for the Public Sector Investment Programme (PSIP). So far, MVR 2.0 billion has been spent under this programme. Unlike in 2024, when land reclamation and road development made up most of PSIP expenses, the 2025 spending has largely focused on flood mitigation projects. A total of MVR 1.1 billion has been directed to such efforts, which includes costs associated with completing works at Velana International Airport.
The Finance Ministry noted that efforts to tighten policies governing PSIP have contributed to a decline in overall expenditure on related programmes.
With these reductions, total state expenditure as of last week stood at MVR 22.6 billion—6.4 per cent lower than in the same period last year—resulting in an overall budget surplus.
