Maldives budget records MVR 1.1 billion surplus

The overall balance of the state budget has reached a surplus of MVR 1.1 billion, as total government expenditure declined by 17.9 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, the government spent MVR 24.3 billion so far this year. This represents a decrease from MVR 29.6 billion during the same period in 2024.

The report notes a 3.5 per cent decline in recurrent expenditure and a 61.4 per cent decline in capital expenditure.

Of the recurrent expenditure, 58.1 per cent was allocated to administrative operations of government offices, which is 8.9 per cent lower than the previous year. Spending on office supplies dropped by 66.6 per cent, while expenditure on repairs and maintenance declined by 16.4 per cent. Transportation-related expenses also saw a reduction of 8.0 per cent year-on-year. Expenditure on government assistance and subsidies fell by 6.5 per cent.

Capital expenditure as of last week stood at MVR 2.3 billion. Of this amount, MVR 1.9 billion was used for infrastructure projects, including road construction, bridges, and airport development. This accounts for 16.9 per cent of the capital budget approved by Parliament for 2025.

The state allocated MVR 12.4 billion for the Public Sector Investment Programme (PSIP) in 2025. As of the reporting date, MVR 2.2 billion had been spent under PSIP. Unlike in 2024, when the majority of PSIP funds were directed toward land reclamation and road development, this year’s focus has shifted to flood mitigation projects. A total of MVR 1.2 billion has been spent on such projects to date, including costs related to the completion of Velana International Airport.

Additionally, MVR 108.6 million has been spent on housing projects. The government has also implemented measures to strengthen policy frameworks related to PSIP, which has contributed to the reduction in overall PSIP expenditure.