Maldives budget maintains MVR 1.4 billion surplus in early August

The state budget recorded an overall surplus of MVR 1.4 billion as of 7 August 2025, according to the Ministry of Finance’s Weekly Fiscal Development Report. This compares to a deficit of MVR 4.8 billion during the same period last year.

The surplus follows a 16.7% reduction in total government expenditure compared with the same period in 2024. Spending stood at MVR 22.3 billion by last week, representing a 17.4% decline year-on-year. Recurrent expenditure fell by 1.1%, while capital expenditure dropped by 60.4%.

Of recurrent spending, 56.9% was used for administrative costs of government offices, a 5.4% decline from last year. Expenditure on office supplies fell by 17.8%, repairs and maintenance by 19.9%, and transportation by 5.3%. Assistance and subsidies provided by the state also declined by 9.1% compared to the same period in 2024.

Capital expenditure totalled MVR 2.8 billion as of last week, with MVR 2.4 billion allocated to infrastructure projects such as roads, bridges, and airport development. This accounts for 21.2% of the Parliament-approved budget for 2025.

The Public Sector Investment Programme (PSIP) was allocated MVR 12.4 billion for 2025, of which MVR 3.4 billion has been spent so far. While PSIP expenditure in the same period last year was largely directed towards land reclamation and road construction, this year a significant portion has been spent on flood mitigation projects, totalling MVR 2.2 billion. This includes funding for the completion of Velana International Airport works.

In addition, MVR 123.1 million has been spent on housing projects. The Ministry of Finance noted that efforts to strengthen PSIP-related policies have contributed to a reduction in total programme expenditure this year.