The Maldives government’s recurrent and capital expenditure has observed a drop of MVR 411 million in January this year compared to the corresponding month in 2024.
The Ministry of Finance in its Weekly Fiscal Development report, revealed that the government spent MVR 1.2 billion on recurrent expenses in January last year, whereas in the January 2025 the government expended a total of MVR 846.4 million.
Public Sector Investment Program (PSIP) expenditure saw a reduction by MVR 188.5 million in the review month, with a total spending of just MVR 0.3 million spent on PSIP efforts in January this year.
The most significant drop in state finances was observed from administrative and operational expenses. While the state incurred over MVR 1 billion for this category during the first month of 2024, total spending under this category reduced to MVR 690.3 million – indicating an MVR 336.4 million drop.
Other areas of expenditure cuts;
Transportation: a reduction by MVR 12.5 million
Aasandha: reduction by MVR 47.2 million
Administrative equipment: MVR 100.8 million drop
Administrative services: MVR 98.1 million reduction
Financing and Interests: MVR 173.7 million reduction
The government received MVR 1.3 billion in cumulative revenues and grants for January this year, which is a decline by MVR 245.8 million compared to the same month in 2024. Over MVR 1 billion from the total revenue to the state had been through tax sources.