The Ministry of Finance has announced a 6% increase in state revenue and a 22% decrease in expenditure, according to its Weekly Fiscal Development Report released this week. The figures reflect the financial performance of the Maldives up to June 5, 2025.
The report indicates that total revenue and grants reached MVR 16.7 billion, a 6% rise compared to the same period in 2024. Tax revenue accounted for 78.4% of this total, amounting to MVR 13.1 billion. Notably, green tax revenue surged by 89.5% due to tax rate adjustments, while airport development fees increased by 49.3% compared to the previous year. As of June 5, the state has collected 41.9% of the projected revenue and grants outlined in the 2025 budget.
On the expenditure side, state spending totaled MVR 15.6 billion, a 22.1% reduction from the same period last year. Recurrent expenditure decreased by 4.4%, with 57.4% of it allocated to administrative operations of government offices, marking a 10.3% reduction compared to 2024. Capital expenditure saw a significant 71.8% decline, totaling MVR 1.5 billion, of which MVR 1.3 billion was invested in infrastructure assets such as roads, bridges, and airport development. This represents 11.2% of the approved budget for these projects.
The Public Sector Investment Program (PSIP), allocated MVR 12.4 billion in the 2025 budget, has utilized MVR 1.5 billion to date. The combination of increased revenue and reduced expenditure has resulted in a state budget surplus of MVR 1.1 billion.
The Ministry’s report highlights the government’s efforts to enhance fiscal discipline while supporting key infrastructure development, contributing to a strengthened financial position for the Maldives in 2025.