The Maldives recorded a fiscal deficit of MVR 1.9 billion as of 11 December 2025, according to the Ministry of Finance and Planning’s latest Weekly Fiscal Developments report, with higher subsidy spending offsetting steady gains in revenue.
Cumulative revenue and grants for the year reached MVR 36.0 billion, driven largely by tax receipts, which accounted for the bulk of government income. Tourism Goods and Services Tax remained the single largest contributor, reflecting the continued importance of tourism to state finances. Overall tax revenues stood at MVR 26.9 billion, while non tax revenues amounted to MVR 8.8 billion.
On the expenditure side, cumulative spending totalled MVR 37.9 billion, with recurrent expenditure continuing to dominate government outlays. Salaries, wages, and pensions reached MVR 13.4 billion, while administrative and operational expenses stood at MVR 19.2 billion. A notable increase during the week came from subsidies, which rose to MVR 3.4 billion, contributing significantly to the latest uptick in expenditure.
Capital expenditure remained subdued at MVR 5.4 billion, well below the approved allocation. Spending on infrastructure assets, including roads, bridges, airports, and other public works, reached MVR 4.8 billion, suggesting slower than planned execution of major development projects as the year draws to a close.
Despite the overall deficit, the government recorded a primary surplus of MVR 2.5 billion, meaning revenues exceeded expenditures when financing and interest costs are excluded. However, financing and interest payments amounted to MVR 4.4 billion, continuing to weigh on the overall fiscal position.
The report also shows continued transfers to the Sovereign Development Fund, which reached MVR 2.4 billion, alongside loan repayments of MVR 5.1 billion. Public sector investment spending stood at MVR 7.3 billion, with transport related projects accounting for the largest share, followed by environmental protection and housing related expenditure.
Taken together, the latest figures point to relatively stable revenue performance but persistent structural pressures on spending, particularly from subsidies and financing costs. With capital expenditure lagging behind projections, questions remain over the pace of project implementation and how fiscal priorities will be managed heading into the final weeks of the year.
