The Maldives has received only 11.5 percent of the grant aid it expected to secure this year, with three weeks left until the end of the year.
The latest weekly fiscal development report released by the Finance Ministry on Friday shows the government received just MVR 289 million in grants as of December 4.
Key figures:
Total expenditure: MVR 37.42 billion
Recurrent expenditure: MVR 32.13 billion
Capital expenditure: MVR 5.3 billion
Total revenue and grants: MVR 35.78 billion
Tax revenue: MVR 26.76 billion
Non-tax revenue: MVR 8.71 billion
Grants: MVR 298 million
The 2025 budget, approved by the ruling People’s National Congress (PNC)-controlled Parliament, had placed the grant projection for this year at MVR 2.59 billion. But data shows the country has not received 88 percent of this, with mere weeks left until the year ends.
The data shows the grant aid is down by 50 percent compared to the same period last year, when the country secured MVR 603 million.
The low grant aid this year follows a similar trend last year, when the country secured just MVR 660 million out of a projected MVR 1.47 billion. This was nearly half of the MVR 1 billion the country received in grants in 2023.
This has led to the PNC administration slashing its grant aid projection for next year, estimating the p Maldives will receive MVR 374 million in grants next year – a figure that is roughly 14 percent of the MVR 2.59 billion that the country had expected to, but failed to receive this year.
The country expects to receive MVR 85.6 million in grants from bilateral partners next year, including MVR 73.6 million from Maldives’ closest neighbor and development partner, India.
This is 86 percent of the grants expected from bilateral partners and 19.7 percent of the total grant projection.
The Maldives’ debt crisis has made it harder for the country to secure the foreign aid it desperately needs.
The country has a staggering USD 1.1 billion in debt repayments due in mid-2026.
Citing default risks, Moody’s has downgraded Maldives’ credit rating from CAA1 to CAA2, while Fitch downgraded the country’s credit rating from CCC+ to CC.
The World Bank has warned the situation makes it harder for the Maldives to secure foreign assistance to alleviate the crisis it faces.