The Maldives recorded a fiscal surplus in the first three weeks of 2025, with revenue outpacing expenditure despite significant variations in government spending across sectors. According to financial data for the period from 1st to 23rd January, the cumulative revenue and grants stood at MVR 1,337.9 million, while expenditure totalled MVR 846.4 million, resulting in a surplus of MVR 491.5 million.
Revenue and Grants
Government revenue for the period saw a boost primarily from Business Profit Tax, with total revenue and grants amounting to MVR 1,337.9 million. This, however, marked a decline compared to the same period in 2024, when revenue and grants totalled MVR 1,583.7 million. The government has set a revenue target of MVR 34,305.9 million for the year.
Tax revenues formed the bulk of collections at MVR 1,058.4 million, with Goods and Services Tax (GST) contributing MVR 406.5 million, while Business and Property Tax added MVR 437.5 million. Non-tax revenues totalled MVR 275.1 million, while grants made up a modest MVR 4.2 million.
Expenditure Trends
Government expenditure during the period reached MVR 846.4 million, significantly lower than the MVR 1,257.4 million spent during the same timeframe in 2024. The most notable rise in spending was seen in Council Grants. The approved expenditure for 2025 stands at MVR 52,742.2 million.
Recurrent expenditure dominated the budget at MVR 843.0 million, with MVR 152.7 million allocated for salaries, wages, and pensions, while administrative and operational expenses stood at MVR 690.3 million. Capital expenditure, on the other hand, remained low at just MVR 3.4 million.
Budget Utilisation and Capital Spending
Spending patterns varied widely across government ministries. The Ministry of Finance and Planning reported an expenditure of MVR 193.2 million, while the Special Budget accounted for MVR 817.1 million. Meanwhile, the Ministry of Construction, Housing, and Infrastructure had utilised only MVR 0.4 million of its MVR 8,016.6 millionbudget, suggesting a slow start to infrastructure projects.
Investment in the Public Sector Investment Program (PSIP) was also minimal, with only MVR 0.3 million spent out of a total allocated budget of MVR 12,378.7 million.
Government Securities and Debt
As of 13th January 2025, total government securities outstanding stood at MVR 90,126 million, with domestic instruments accounting for MVR 80,886 million. Treasury Bills made up MVR 36,832 million, while Treasury Bonds were recorded at MVR 25,311 million. Meanwhile, external debt instruments amounted to MVR 9,240 million.
Fiscal Outlook
Despite posting a surplus in early 2025, the Maldives continues to exhibit uneven government spending, with significant allocations concentrated in certain areas while capital investment remains low. The high level of outstanding government securities highlights continued reliance on debt instruments for financing. Whether this trend persists in the coming months will depend on how effectively ministries utilise their budgets and how revenue collection progresses throughout the year.
