The Maldives government reported a surplus in its finances during the first two weeks of January 2025, according to a fiscal update from the Ministry of Finance. From 1 to 16 January, cumulative revenue and grants totalled MVR 725.0 million, while expenditure reached MVR 261.4 million, resulting in an overall surplus of MVR 463.6 million.
Revenue Breakdown
The majority of revenue was driven by tax collections, which amounted to MVR 544.4 million. Key contributors included:
- Business and Property Taxes: MVR 218.0 million, of which Corporate Income Tax accounted for MVR 56.7 million and Non-resident Withholding Tax for MVR 131.8 million.
- Goods and Services Tax (GST): MVR 223.0 million, with Tourism GST contributing MVR 124.9 million and General GST MVR 98.1 million.
- Import Duties: MVR 60.6 million.
- Individual Income Tax: MVR 29.5 million.
Non-tax revenues totalled MVR 176.2 million, comprising Fees and Charges (MVR 65.4 million), Property Income(MVR 59.2 million), and Airport Development Fee (MVR 17.8 million). Grants contributed a modest MVR 4.2 million.
Expenditure Overview
Total government expenditure during the period was MVR 261.4 million, primarily driven by recurrent expenses, which accounted for MVR 261.0 million. Key areas of spending included:
- Salaries, Wages, and Pensions: MVR 4.4 million.
- Administrative and Operational Expenses: MVR 256.6 million.
- Grants, Contributions, and Subsidies: MVR 102.2 million.
- Financing and Interest Costs: MVR 103.7 million.
Capital expenditure was minimal, with only MVR 0.4 million spent on equipment.
Government Securities
As of 13 January 2025, the total outstanding government securities stood at MVR 90,126 million, with domestic instruments forming the majority. This includes:
- Treasury Bills: MVR 36,832 million in MVR and MVR 6,285 million in USD.
- Treasury Bonds: MVR 25,311 million in MVR and MVR 9,100 million in USD.
- Islamic Instruments: MVR 3,051 million in MVR and MVR 308 million in USD.
Public Sector Investment Program (PSIP)
The government has allocated MVR 12,378.7 million for the Public Sector Investment Program (PSIP), with key allocations for transport (MVR 4,166.7 million), housing and infrastructure (MVR 1,801.8 million), and land reclamation and road construction (MVR 1,356.7 million). However, as of 16 January 2025, no funds have been utilised for these projects.
Agency Budget Utilisation
The Ministry of Higher Education, Labour & Skills Development reported the highest utilisation during the period at MVR 64.5 million, while the National Social Protection Agency spent MVR 52.5 million. Other key expenditures included MVR 9.3 million by the Maldives National Defence Force and MVR 2.3 million by Maldives Police Services.
Fiscal Notes
The Ministry of Finance noted that these figures are preliminary and subject to revisions as reconciliation work continues. Significant structural changes were also highlighted, including the dissolution of the Ministry of Housing, Land & Urban Development on 26 December 2024, with its functions redistributed to other agencies.
