The Ministry of Finance has released its Weekly Fiscal Developments Report for the period ending 13th February 2025, revealing that the Maldives recorded a budget surplus of MVR 1.4 billion. The surplus results from cumulative revenue and grants of MVR 4.44 billion, surpassing total expenditure of MVR 3.04 billion during the period.
Revenue and Grants
Revenue and grants collected as of 13th February 2025 totalled MVR 4.44 billion, with tax revenues making up MVR 3.87 billion. The most significant increase in revenue during the week came from import duties, while business and property taxes contributed over MVR 1.49 billion. The Goods and Services Tax (GST) generated MVR 1.76 billion, with Tourism GST alone contributing MVR 1.16 billion.
Non-tax revenues amounted to MVR 541.3 million, while grants stood at MVR 28.3 million.
Expenditure Overview
Total government expenditure reached MVR 3.04 billion, with 94% spent on recurrent expenses and 6% allocated to capital projects. The largest expenditure was on Aasandha (MVR 413.6 million), salaries, wages, and pensions (MVR 1.14 billion), and administrative and operational costs (MVR 1.72 billion).
Sectoral Spending
Among government agencies, the National Social Protection Agency (NSPA), Ministry of Education, and Maldives Police Services recorded the highest budget utilisation. The Ministry of Construction, Housing & Infrastructure had one of the highest allocations but reported minimal spending, reflecting the slow execution of capital projects.
Public Sector Investment Programme (PSIP)
Development projects under the Public Sector Investment Programme (PSIP) saw limited progress, with only MVR 324.8 million spent as of 13th February. The largest PSIP expenditure was directed toward airport development (MVR 207.9 million) and land reclamation and road construction (MVR 84.4 million).
Debt and Financing
Outstanding government securities stood at MVR 91.2 billion, with a significant portion held in domestic treasury bonds and Islamic finance instruments. Loan repayments for the period amounted to MVR 474.8 million, while transfers to the Sovereign Development Fund stood at MVR 125.3 million.
Fiscal Outlook
Despite the current MVR 1.4 billion surplus, the government still faces a projected deficit of MVR 9.38 billion for 2025. With capital expenditure significantly lagging, financial analysts expect spending to accelerate in the coming months, potentially narrowing the surplus.
