Maldives' expenditure declines to maintain surplus; revenue records growth

State expenditure fell by 18.4 per cent in 2025 up to mid-September, while revenue recorded a 6.6 per cent increase, according to the Ministry of Finance and Planning.

Figures from the Weekly Fiscal Development Report, released on Tuesday, show that total expenditure stood at MVR 26.6 billion as of 18 September. Recurrent expenditure decreased slightly by 0.2 per cent, and capital expenditure was reported to have fallen by 134.3 per cent.

More than half of recurrent spending, 58.4 per cent, went towards administrative expenses of government offices, a decline of 3.7 per cent compared to the same period last year. Spending on office supplies dropped 16.6 per cent, while repairs and maintenance decreased by 18.8 per cent. Expenditure on travel was down by 3.6 per cent, and grants and subsidies saw a 7.7 per cent reduction.

At the same time, loan repayments rose sharply, totalling MVR 4.3 billion compared to MVR 1.9 billion a year earlier. The ministry noted that this increase was due to higher interest payments on previous loans.

Capital spending amounted to MVR 3.5 billion, of which MVR 3 billion went to infrastructure works, including roads, bridges and airports. Under the Public Sector Investment Programme (PSIP), MVR 4.2 billion has been spent this year from an annual allocation of MVR 12.4 billion. Most of this went to transportation projects (MVR 2.6 billion), while MVR 135.9 million was directed to housing schemes.

The report stated that the budget maintained an overall surplus of MVR 741.2 million by mid-September.

On the revenue side, collections and grants totalled MVR 27.4 billion, marking a 6.6 per cent increase over the same period last year.

Tax income accounted for MVR 20.9 billion, or 76.6 per cent of the total. Green tax receipts rose by 102.2 per cent, attributed to revised rates. Departure tax increased by 46.1 per cent, and personal income tax rose by 15.7 per cent.

Non-tax revenue grew by 22.6 per cent, with significant contributions from lease extension fees for resort developments. The airport development fee rose by 55 per cent, supported by a 9.6 per cent increase in tourist arrivals, which exceeded 1.5 million during the period. Additional income was also collected from land acquisition and resort rental fees.

Deposits to the Sovereign Development Fund reached MVR 1.5 billion, a 54.6 per cent increase from the previous year.

By 18 September, government had achieved 64.8 per cent of its annual revenue and grants target, while expenditure accounted for 54 per cent of the 2025 budget estimate.