Maldives' state spending drops 15.6%

The Ministry of Finance has reported a 15.6 per cent decline in state budget expenditure as of 28 August 2025 compared to the same period last year.

According to the ministry’s Weekly Fiscal Development Report, total expenditure stood at MVR 24.8 billion by the end of last week. Recurrent expenditure decreased by 1.7 per cent, while capital expenditure recorded a sharper fall of 57.4 per cent.

Within recurrent expenditure, 56 per cent was allocated to administrative operations of government offices, representing a 5.5 per cent decline from the same period last year. Spending on office supplies dropped by 14.1 per cent, repairs and maintenance by 16.6 per cent, and transportation by 6 per cent. Expenditure on government aid and subsidies decreased by 7.5 per cent.

Capital expenditure reached MVR 3.1 billion, including MVR 2.7 billion spent on infrastructure such as road construction, bridges, and airport development.

The 2025 budget allocated MVR 12.4 billion for the Public Sector Investment Programme (PSIP). As of last week, MVR 4 billion has been spent under PSIP, with MVR 2.5 billion directed towards projects addressing flooding issues and MVR 124.6 million allocated to housing projects.

Last year, a significant portion of PSIP spending was directed towards land reclamation and road projects, while this year’s spending has focused more on flood-related initiatives.

Overall, expenditure for the year to date totals MVR 24.8 billion, 15.6 per cent lower than the same period in 2024. The state budget currently reflects a surplus of MVR 534.6 million.