The Ministry of Finance has revealed in its latest Weekly Fiscal Developments report that the Maldives concluded 2024 with a significant budget deficit of MVR 15.3 billion. The report highlights increased revenue, particularly from tourism-related taxes, but notes that government expenditure continues to surpass income.
Revenue and Grants
The total revenue and grants for 2024 amounted to MVR 34.7 billion, reflecting a modest increase from the approved budget of MVR 34.3 billion. Tax revenues, which formed the majority of income, reached MVR 26.2 billion. Tourism Goods and Services Tax (TGST) was the largest contributor, generating MVR 9.5 billion, underscoring the strong performance of the tourism sector.
Non-tax revenues amounted to MVR 7.9 billion, supported by property income and fees, while grants decreased to MVR 660.6 million, signalling reduced external funding.
Expenditure Analysis
Government expenditure for the year reached MVR 50 billion, with recurrent expenses accounting for MVR 34.8 billion. This includes MVR 13.6 billion for salaries, wages, and pensions, and MVR 21 billion for administrative and operational expenses. Capital expenditure totalled MVR 15.3 billion, primarily allocated to infrastructure projects such as roads, bridges, and airport developments, which consumed MVR 7.4 billion.
Public Sector Investment Program (PSIP)
PSIP spending amounted to MVR 11.4 billion, with the transport sector receiving the largest share at MVR 4.9 billion. Land reclamation and road construction also saw substantial investment, totalling MVR 2.75 billion.
Government Debt
The total outstanding government debt stood at MVR 91.1 billion as of December 30, 2024. Domestic instruments, including treasury bills and bonds, comprised the majority at MVR 81.9 billion. Treasury bills alone accounted for MVR 37.2 billion, while treasury bonds amounted to MVR 25.3 billion.
Budget Utilisation by Ministries
Among government agencies, the Ministry of Construction & Infrastructure recorded the highest utilisation at MVR 6.3 billion, followed by the Ministry of Finance at MVR 2.6 billion. Education and defence were also significant areas of expenditure, with MVR 4 billion and MVR 2.5 billion spent, respectively.
The fiscal deficit of MVR 15.3 billion, up from MVR 13 billion in 2023, reflects a persistent gap between revenue and expenditure. While revenue has benefited from tourism, the growth in expenditure, particularly in administrative and operational costs, continues to challenge fiscal stability.
