The Maldives government, despite earning a cumulative revenue of MVR 3.2 billion, saw a decline in state earnings by MVR 574 million compared to the same period last year, reported the Ministry of Finance.
By end of January 2024, the government earned MVR 3.7 billion, whereas in the same period this year, the state earned MVR 3.15 billion.
Despite the decline in revenues, the government’s overall balance stood at a surplus of MVR 1.05 billion; owing to less government spending against revenues earned.
Goods and Service Tax (GST), which had a collection of MVR 1.39 billion in January this year, remains the top revenue contributor to the government. From the total GST earnings, state earned MVR 378 million in General Goods and Services Tax (GGST) and a little over MVR 1 billion in Tourism Goods and Services Tax (TGST).
The state made a larger spending on its recurrent needs, with MVR 955.1 million spent on salaries, wages and pensions of public sector employees. Government made just MVR 80.1 million in expenses towards capital expenditure.
The National Social Protection Agency (NSPA) received the highest spending allocation so far in 2025, with MVR 172.5 million spent for the authority, with Maldives Police Service coming in second with government allocating MVR 155.6 million so far.
Government has spent MVR 125.6 million towards Maldives National Defence Force (MNDF) so far, while MVR 120.7 million had been spent towards the Ministry of Health and another MVR 96.6 million towards the Ministry of Education.
Expenditure of Public Sector Investment Program (PSIP) so far stood at MVR 86 million.
During last Thursday’s presidential addressing at the Parliament, to inaugurate this year’s session of the legislative, President Dr. Mohamed Muizzu highlighted the tradition of state’s expenditure exceeding the revenues, and stressed his administration aimed to end this practice.
The current administration approved budget for 2025 is MVR 56.6 billion, while the government hopes of bringing down budget deficit to MVR 9.4 billion by the end of the current year.
Dr. Muizzu’s administration has allocated MVR 11.5 billion implemented reform measures to reduce state’s spending, and projects the state would save up to MVR 6.6 billion.