Maldives records budget surplus for 7 months as spending declines
Budget deficit for the same period last year was MVR 6.4 billion, while the 2023 deficit for the corresponding period stood at MVR 4.2 billion.
The Maldives has recorded a budget surplus in the first seven months of 2025, following a decline in both recurrent and capital expenditure, according to a report released by the Ministry of Finance.
The Weekly Fiscal Development report published on Wednesday outlines the government’s financial performance up to the end of July. The report shows a budget surplus of MVR 314.3 million during the period, a shift from the deficits recorded in recent years.
In comparison, the budget deficit for the same period last year was MVR 6.4 billion, while the 2023 deficit for the corresponding period stood at MVR 4.2 billion.
Total government spending during the review period declined by 17.4% compared to the same period last year.
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Recurrent expenditure amounted to MVR 19.2 billion, down from MVR 19.6 billion — a decrease of 2.2%.
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Capital expenditure dropped significantly to MVR 2.7 billion from MVR 6.9 billion, reflecting a reduction of 60.8%.
Among the recurrent expenses, MVR 10.8 billion — or 56.2% — was spent on administrative operations, marking a 7.3% decline from MVR 11.6 billion in the previous year. Specific categories recorded the following changes:
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Office supplies: down 20%
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Repair and maintenance: down 20.1%
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Transportation: down 5.1%
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Aid and subsidies: down 10.7%
Out of the MVR 2.7 billion capital expenditure:
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MVR 2.3 billion was spent on infrastructure assets such as roads, bridges, and airports. This accounts for 20.5% of the total budget allocated by Parliament for such assets this year.
The 2025 state budget includes an allocation of MVR 12.4 billion for the Public Sector Investment Programme (PSIP). As of last week, MVR 3.4 billion had been spent under this programme.
Unlike the previous year, where a large portion of PSIP expenditure was directed towards land reclamation and road construction, the 2025 PSIP has focused on projects aimed at addressing transport challenges.
Notable expenditures under PSIP include:
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MVR 2.2 billion on transport, including works at Velana International Airport (VIA)
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MVR 114.6 million on housing-related projects
This is the first time in recent years that the Maldives has recorded a budget surplus over a seven-month period.
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