The Maldives recorded a fiscal surplus of MVR 118.2 million as of 14 May 2026, but the latest figures point to growing pressure on public finances as expenditure increased at a faster pace than revenue.
According to the Ministry of Finance and Public Enterprises’ Weekly Fiscal Developments report, cumulative revenue and grants reached MVR 16.8 billion during the period from 1 January to 14 May 2026. This was higher than the MVR 14.9 billion recorded during the same period last year, supported mainly by tax revenue.
Total expenditure stood at MVR 16.7 billion, compared with MVR 13.6 billion during the same period in 2025. While the government remained in surplus, the margin narrowed sharply from MVR 1.3 billion last year to MVR 118.2 million this year, indicating that higher revenue collection has been largely absorbed by rising spending commitments.
Tax revenue reached MVR 13.3 billion, up from MVR 11.4 billion a year earlier. Goods and Services Tax remained the largest source of tax income, rising to MVR 7.5 billion. Tourism GST increased to MVR 5.4 billion, while General GST rose to MVR 2.2 billion. Business and Property Tax also increased, reaching MVR 2.7 billion compared with MVR 2 billion during the same period last year.
Non-tax revenue, however, declined slightly to MVR 3.4 billion from MVR 3.5 billion last year. Although property income increased, supported by rent from resorts and land acquisition and conversion fees, revenue from fees and charges fell significantly.
On the expenditure side, recurrent spending continued to dominate the budget, reaching MVR 14.7 billion. This accounted for the vast majority of total expenditure, while capital spending stood at MVR 2 billion. The report shows that 88 percent of expenditure so far this year has been recurrent, compared with 12 percent for capital expenditure.
A major driver of expenditure growth was grants, contributions and subsidies, which rose to MVR 5.3 billion from MVR 3.6 billion last year. Subsidies alone increased to MVR 2.3 billion, compared with MVR 1.3 billion during the same period in 2025. This suggests that subsidy costs remain one of the most significant pressures on the government’s recurrent spending.
Salaries, wages and pensions also increased to MVR 5.3 billion, while administrative and operational expenses rose to MVR 9.3 billion. Financing and interest costs remained broadly unchanged at around MVR 2.1 billion.
The figures also show a sharp rise in loan repayments, which reached MVR 8.7 billion as of 14 May 2026, compared with MVR 2.5 billion during the same period last year. Although loan repayments are listed as memorandum items rather than part of recurrent and capital expenditure, the increase highlights the scale of debt servicing obligations facing the state.
Public Sector Investment Programme spending stood at MVR 2 billion, slightly lower than the MVR 2.1 billion recorded during the same period last year. This comes despite higher capital expenditure overall, suggesting that parts of the government’s development spending remain uneven across sectors.
The report also noted that expenditure figures reflect transactions that have been posted, meaning they have been recorded but not necessarily settled in cash. Revenue and expenditure data may also change as reconciliation work continues.
The latest figures show that the government’s fiscal position remains technically in surplus for now, but the narrowing balance points to the challenge of managing rising recurrent costs, subsidy spending and debt repayments while maintaining capital investment.
