The latest fiscal data from the Maldives Ministry of Finance reveals a notable decline in both revenue and expenditure in January 2025 compared to the same period in 2024. While the government’s revenue stream saw reductions in tax and non-tax earnings, the overall expenditure also contracted significantly, particularly in capital investments.
Total revenues and grants for January 2025 stood at MVR 3,151.1 million, marking a decrease from MVR 3,725.1 million in January 2024. Tax revenue, the primary source of government income, fell from MVR 3,288.8 million to MVR 2,776.8 million. This decline was driven by lower import duties, which dropped from MVR 287.2 million to MVR 128.7 million, and a reduction in business and property tax, which fell from MVR 1,387.4 million to MVR 1,036.9 million. However, the tourism sector provided some relief, with Tourism Goods and Services Tax rising from MVR 943.1 million to MVR 1,007.0 million.
Non-tax revenue also experienced a downturn, declining from MVR 434.0 million to MVR 357.6 million. On the other hand, grant inflows increased, climbing from MVR 2.6 million to MVR 16.5 million.
On the expenditure side, total government spending in January 2025 was MVR 2,098.4 million, down from MVR 2,722.9 million in the previous year. Recurrent expenditure declined from MVR 2,422.4 million to MVR 2,018.3 million, with a notable increase in salaries, wages, and pensions, which rose from MVR 855.7 million to MVR 955.1 million. Administrative and operational expenses, however, saw a significant reduction, falling from MVR 1,510.9 million to MVR 1,063.2 million.
Capital expenditure saw the most pronounced decline, dropping from MVR 300.5 million to MVR 80.1 million. Investments in infrastructure assets fell sharply from MVR 138.9 million to MVR 21.2 million, while spending on land and buildings was reduced from MVR 135.7 million to MVR 53.1 million.
Despite the reductions in revenue and expenditure, the Maldives maintained a fiscal surplus of MVR 1,052.7 million for January 2025. The decrease in capital spending and administrative expenses reflects ongoing fiscal adjustments, though the impact of reduced tax revenues on long-term economic stability remains a key concern.
