The Maldives’ Ministry of Finance has released its latest fiscal data, revealing a cumulative deficit of MVR 10.8 billion from January to 14 November 2024. This reflects a balance between MVR 29.6 billion in revenue and grants and MVR 40.4 billion in expenditure during the period.
Tax revenues accounted for 76% of total revenue, amounting to MVR 22.6 billion, with key contributions from Goods and Services Tax (MVR 12.1 billion) and Business and Property Tax (MVR 5.7 billion). Non-tax revenues, primarily fees and property income, reached MVR 6.4 billion. However, grants remained relatively low at MVR 565.3 million.
On the expenditure side, recurrent spending formed 70% of total outlays, driven by salaries, pensions, and operational expenses, amounting to MVR 28.2 billion. Capital expenditure stood at MVR 12.1 billion, with significant investments in infrastructure projects, including roads, bridges, and airports. The Ministry highlighted ongoing efforts to address discrepancies in expenditure figures as reconciliation continues.
The report also noted an increase in government borrowing through securities. Outstanding government securities now total MVR 88.8 billion, with treasury bills and bonds making up a significant share.
The Maldives faces a challenging fiscal landscape as expenditure outpaces revenue. While the government has prioritised infrastructure and public sector investment, the persistent deficit underlines the need for fiscal reforms. Experts suggest exploring new revenue streams and improving expenditure efficiency to mitigate the widening fiscal gap.
This latest update provides a snapshot of the Maldives’ economic position, highlighting both the achievements and challenges as the government balances development goals with fiscal sustainability.
