Government finances showed a surplus of MVR 534.6 million by the end of August 2025, according to the Ministry of Finance and Planning’s latest Weekly Fiscal Developments report. Cumulative revenues and grants stood at MVR 25.3 billion, while expenditure reached MVR 24.8 billion.
The balance reflects strong revenue collection alongside lower-than-expected capital spending. Tax revenues amounted to MVR 19.7 billion, with Tourism Goods and Services Tax contributing MVR 7.2 billion and Green Tax bringing in MVR 1.4 billion. Non-tax revenues were recorded at MVR 5.4 billion, driven by fees, charges, and resort rents.
On the expenditure side, recurrent spending reached MVR 21.7 billion, largely due to salaries, wages, and pensions which totalled MVR 9.4 billion. Capital expenditure, however, was comparatively low at MVR 3.1 billion, less than half of the MVR 7.3 billion spent during the same period last year. Infrastructure and land-related projects accounted for much of the shortfall.
The report also highlighted that only MVR 3.9 billion of the Public Sector Investment Programme had been utilised out of an approved MVR 12.4 billion. This under-execution of capital projects has been a key factor in shaping the fiscal position.
While the surplus suggests short-term stability, the slowdown in capital investment may have implications for longer-term development plans and the pace of project delivery.
