- The Maldives' fiscal balance swung to a MVR 1.37 billion deficit by 23 July 2026, reversing last year's surplus as spending outpaced revenue.
- Government expenditure rose 19.7 per cent to MVR 25.48 billion, driven by subsidy spending surging 79 per cent to MVR 3.19 billion.
- Revenue and grants grew 10.9 per cent to MVR 24.11 billion, while loan repayments reached MVR 9.35 billion, over 2.5 times last year's level.
Faster growth in government spending than revenue shifted the Maldives’ fiscal balance into a deficit of MVR 1.37 billion by 23 July 2026, reversing the surplus recorded at the same point last year.
The Ministry of Finance and Public Enterprises reported cumulative revenue and grants of MVR 24.11 billion, compared with expenditure of MVR 25.48 billion. At the corresponding point in 2025, revenue exceeded expenditure by MVR 437.3 million, representing a MVR 1.81 billion deterioration in the overall balance over the year.
Revenue and grants increased 10.9 per cent from MVR 21.73 billion. Tax revenue rose 12.1 per cent to MVR 18.36 billion and accounted for about 76 per cent of total collections.
Goods and Services Tax remained the largest revenue source, increasing 9.7 per cent to MVR 9.96 billion. Business and property tax revenue rose 19.8 per cent to MVR 3.89 billion, while import duties increased 14 per cent to MVR 1.91 billion. Non-tax revenue recorded slower growth of 2.8 per cent, reaching MVR 5.30 billion.
Government expenditure grew at a considerably faster rate, rising 19.7 per cent from MVR 21.29 billion to MVR 25.48 billion. Recurrent expenditure accounted for MVR 22.27 billion, or more than 87 per cent of the total, and represented nearly 87 per cent of the year-on-year increase in spending.
Administrative and operational expenses increased 26.1 per cent to MVR 13.69 billion. Within this category, spending on grants, contributions and subsidies rose 43.8 per cent to MVR 7.52 billion. Subsidy expenditure alone climbed 79 per cent, from MVR 1.78 billion to MVR 3.19 billion.
Salaries, wages and pensions increased at a slower rate of 9.5 per cent to MVR 8.51 billion. Capital expenditure rose 20.8 per cent to MVR 3.21 billion, although memorandum figures showed Public Sector Investment Programme expenditure declining 29.8 per cent to MVR 3.21 billion.
The Government maintained a primary surplus of MVR 1.49 billion, meaning revenue remained above expenditure before financing and interest costs were included. However, the primary surplus was 54.4 per cent lower than a year earlier and was insufficient to cover MVR 2.86 billion in financing and interest costs, resulting in the overall deficit.
Loan repayments, which are reported separately from expenditure, reached MVR 9.35 billion by 23 July. This was more than two and a half times the MVR 3.63 billion recorded during the corresponding period of 2025.
The Finance Ministry noted that the expenditure figures represent transactions posted in government accounts and may not yet have been settled in cash. Revenue and expenditure totals may also change as reconciliation work continues.
