State expenditure falls by 15.3% as budget records MVR 186.7M surplus

State expenditure declined by 15.3 per cent as of 16 October 2025, resulting in a budget surplus of MVR 186.7 million, according to the Ministry of Finance’s Weekly Fiscal Development Report.

The report, which includes revenue and expenditure data up to mid-October, was released following the resolution of delays in recording fiscal transactions. It shows that total state expenditure stood at MVR 30.5 billion, 15.3 per cent lower than the corresponding period last year. Recurrent expenditure decreased by 0.2 per cent, while capital expenditure dropped by 58.1 per cent.

Of total recurrent spending, 59.1 per cent was directed towards administrative costs of government offices, down 2.9 per cent from the previous year. Spending on office supplies fell by 13 per cent, while repair and maintenance costs declined by 3.3 per cent. Expenditure on government subsidies and assistance also decreased by 7.9 per cent.

Debt repayments amounted to MVR 4.4 billion, compared to MVR 2.0 billion during the same period last year. The increase was mainly attributed to higher interest payments on previously incurred government loans.

Capital expenditure reached MVR 4 billion, including MVR 3.5 billion on infrastructure such as roads, bridges, and airport development.

Under the 2025 state budget, MVR 12.4 billion was allocated for the Public Sector Investment Programme (PSIP). So far, MVR 5.9 billion has been spent on PSIP projects this year. Unlike last year, when the majority of spending was directed toward land reclamation and road construction, most PSIP expenditure in 2025 has been focused on flood mitigation initiatives, which have cost MVR 3.9 billion. Additionally, MVR 164 million has been spent on housing projects.

With total expenditure standing at MVR 30.5 billion as of mid-October—15.3 per cent lower than the previous year—the overall fiscal balance remained in surplus at MVR 186.7 million.