State revenue reach record MVR 39.9 billion in 2025

The Ministry of Finance has reported that state revenue and grants reached MVR 39.9 billion in 2025, the highest annual total recorded by the Maldives.

The figures were published on Tuesday in the ministry’s State Budget Outcome Statement for 2025, which outlines the government's fiscal performance for the year.

According to the report, revenue and grants increased by MVR 4.8 billion compared with MVR 35.1 billion collected in 2024, representing growth of 13.6 per cent.

The ministry said revenue collections also exceeded the original budget forecast. The state had projected revenue and grants of MVR 39.8 billion when the budget was submitted to Parliament on October 31, 2024. Actual collections surpassed that estimate by MVR 74.4 million.

The report attributed the increase in revenue primarily to growth in the tourism sector and higher non-tax revenue collections. While some revenue categories fell below projections, stronger performance in other areas offset the shortfall.

Tourism sector performance remained close to budget forecasts. The government had projected 2.248 million tourist arrivals for the year, while actual arrivals reached 2.246 million. Although this was 1,604 arrivals below the forecast, it represented growth of 9.8 per cent compared with 2024.

Tourist bed nights also exceeded expectations, reaching 14.21 million compared with the projected 14.15 million.

The increase in tourism activity contributed to higher collections from Tourism Goods and Services Tax (TGST) and Green Tax, while Goods and Services Tax (GST) collections remained in line with budget estimates.

Non-tax revenue also contributed significantly to total income. The report shows the state received:

The increase in revenue contributed to a reduction in the budget deficit.

While the approved budget projected a deficit of MVR 9.4 billion, the final deficit stood at MVR 4.4 billion, MVR 5 billion lower than forecast.

The report states that this was the lowest budget deficit recorded in the past six years.

As a share of Gross Domestic Product (GDP), the deficit declined to 3.6 per cent, compared with 9.9 per cent in 2024 and 10.5 per cent in 2023.

The ministry also noted that the government completed the fiscal year without seeking a supplementary budget. This marks the first time in five years that expenditure remained within the limits approved in the original budget.

Total expenditure for the year reached MVR 44.2 billion, compared with the budgeted estimate of MVR 49.2 billion.

At the end of 2025, total public debt stood at MVR 154.9 billion, equivalent to 129.8 per cent of GDP.

The government spent MVR 10.1 billion on debt servicing during the year, including:

The report also noted that the government has since settled a US$500 million sovereign Sukuk and a separate US$50 million debt repayment owed to India.

The Ministry of Finance said the stronger revenue performance, expenditure controls and debt repayments contributed to an improvement in the government's fiscal position during 2025.