Expenditure falls 15.5% to MVR 25.4 billion by early Sept

State budget expenditure reached MVR 25.4 billion as of 9 September 2025, a decline of 15.5 per cent compared with the same period last year, according to the Ministry of Finance.

The ministry’s Weekly Fiscal Development Report attributed the decrease mainly to a 57.7 per cent reduction in capital expenditure. Spending on administrative functions of government offices, which accounts for 56.7 per cent of recurrent expenditure, also fell by 4.5 per cent year-on-year. Expenditure on office supplies decreased by 15.5 per cent, repairs and maintenance by 15.6 per cent, and transportation by 5.8 per cent. Government assistance and subsidies declined by 7 per cent.

Capital expenditure stood at MVR 3.3 billion, including MVR 2.9 billion spent on infrastructure projects such as road construction, bridges, and airport development.

The 2025 state budget allocated MVR 12.4 billion for the Public Sector Investment Programme (PSIP), of which MVR 4.1 billion has been spent so far. While last year’s PSIP spending was focused largely on land reclamation and road construction, this year MVR 2.6 billion has been directed towards projects addressing flood-related issues, with an additional MVR 131.6 million spent on housing projects. The ministry noted that tighter policies on PSIP implementation have reduced overall expenditure.

As a result, state spending of MVR 25.4 billion recorded by last week was 15.5 per cent lower than the same period last year. The government currently maintains a budget surplus of MVR 868.7 million.