The latest Weekly Fiscal Developments report shows the government recorded a cumulative deficit of MVR 1,438.3 million as at 27 November 2025, with capital expenditure continuing to slow despite earlier projections for the year.
According to the Ministry of Finance and Planning, total revenue and grants reached MVR 34,966.8 million for the period. The biggest increase this week came from Tourism Goods and Services Tax, maintaining its role as the main driver of tax inflows. Non tax revenue also grew, supported by higher fees and charges and property income.
Cumulative expenditure stood at MVR 36,405.1 million, with the primary rise this week stemming from salaries and wages under recurrent spending. Recurrent expenditure reached MVR 31,193.0 million, led by staff related costs and administrative expenses. Capital expenditure, however, remained subdued at MVR 5,212.1 million, less than half of the approved annual total. Most major categories, including land and buildings and infrastructure assets, reflected lower utilisation compared with the same point last year.
This slowdown is also visible in the Public Sector Investment Program. Outlays in sectors such as housing, land reclamation, environmental protection, health services and education all showed lower-than-anticipated progress. Transport is the only major category that remained close to last year’s pace, largely due to continued spending on airports and bridges.
The report shows that most large ministries and agencies continue to operate within similar ranges as past years. The Ministry of Construction, Housing and Infrastructure accounts for the largest share of spending so far, followed by the National Social Protection Agency and the Ministry of Education. Health sector entities, including the Ministry of Health and Indira Gandhi Memorial Hospital, have also recorded notable expenditure.
Financing costs for the period reached MVR 4,214.7 million, while loan repayments climbed to MVR 4,963.7 million. Government securities outstanding totalled MVR 97.2 billion as of 17 November 2025, reflecting both domestic and external instruments.
With just over a month left in the fiscal year, the data highlights the persistent gap between projected and actual capital spending, raising questions about the pace of ongoing infrastructure projects and the broader execution of the development plan. At the same time, the consistent rise in recurrent commitments and interest related costs continues to shape the government’s fiscal position.
