Maldives budget records MVR 1.4 billion surplus as spending declines
Government spending stood at MVR 18.8 billion, a reduction from MVR 19.5 billion during the corresponding period last year.
The Maldives has recorded an overall budget surplus of MVR 1.4 billion, as state expenditure fell by 19.5 per cent compared to the same period last year.
According to the Weekly Fiscal Development Report published by the Ministry of Finance as of 10 July 2025, government spending stood at MVR 18.8 billion, a reduction from MVR 19.5 billion during the corresponding period last year.
Recurrent expenditure decreased by 4.9 per cent, while capital expenditure dropped by 63.3 per cent. Of the recurrent expenditure, 56.7 per cent was allocated to administrative operations of government agencies, which marks an 11.3 per cent decline from the previous year. Spending on office supplies and repairs and maintenance also fell by 67.3 per cent and 9.6 per cent respectively. Transportation-related costs declined by 5.6 per cent, and spending on government assistance and subsidies was down by 9.8 per cent.
Capital expenditure as of last week was MVR 2.1 billion. Of this, MVR 1.2 billion was spent on infrastructure assets, including roads, bridges, and airport development. This represents 17.1 per cent of the total capital budget approved by Parliament for 2025.
The 2025 state budget includes MVR 12.4 billion for the Public Sector Investment Programme (PSIP). So far, MVR 2.1 billion has been spent under PSIP. While PSIP spending in the same period last year focused on land reclamation and road development, this year’s expenditure has been directed mainly towards projects addressing flooding. A total of MVR 1.1 billion has been spent on flood-related initiatives, including costs associated with the completion of works at Velana International Airport.
The Ministry of Finance also noted that the government has adopted new measures to strengthen policy frameworks related to PSIP implementation. As a result, overall expenditure on these programmes has been reduced.
As of last week, total government expenditure reached MVR 23.6 billion, which is 8.6 per cent lower than the same period in 2024. The continued reduction in both recurrent and capital spending has contributed to the current budget surplus.
