Government revenues and grants reached MVR 36.9 billion as of 18 December 2025, while total expenditure stood at MVR 38.9 billion, resulting in an overall deficit of MVR 2.0 billion, according to the Ministry of Finance and Planning’s Weekly Fiscal Developments for Week 48. At the same point last year, the fiscal position was comparatively weaker, with lower revenues and significantly higher spending, indicating a notable improvement in year-on-year budget performance. The current figures reflect stronger revenue mobilisation alongside tighter control over expenditure, particularly on the capital side.
Total revenue and grants were higher by approximately MVR 3.8 billion, representing an increase of around 12 percent compared to 2024. This growth was largely driven by higher tax collections and a strong rise in non-tax revenue, underscoring the continued importance of tourism and related economic activity to the Maldives’ fiscal base. At the same time, total expenditure declined by about MVR 5.7 billion year on year, primarily due to lower capital spending, which has eased short-term pressure on the overall balance.
Tax revenue reached MVR 27.5 billion, an increase of around 10 percent compared to last year. Goods and Services Tax remained the single largest contributor at MVR 15.2 billion, with Tourism GST accounting for MVR 10.1 billion and General GST contributing MVR 5.1 billion. These figures highlight the central role of the tourism sector in supporting public finances, as resort operations, visitor spending, and associated services continue to generate substantial fiscal inflows. Additional tourism-linked revenues also showed positive momentum, with Airport Service Charges and Departure Tax reaching MVR 1.76 billion and Green Tax increasing to MVR 2.10 billion, reflecting sustained visitor arrivals and resort occupancy levels.
Other tax categories showed mixed performance. Import duties declined to MVR 3.0 billion, while business and property tax collections eased to MVR 5.19 billion compared to the same period last year. Corporate income tax remained broadly stable at MVR 2.83 billion, while individual income tax rose to MVR 460.2 million. Overall, the tax profile indicates robust collections from tourism and consumption-related channels, while growth from trade and broader business activity has been more subdued.
Non-tax revenue recorded a stronger expansion, reaching MVR 9.14 billion compared to MVR 7.54 billion a year earlier. Fees and charges contributed MVR 4.08 billion, including MVR 1.78 billion from the Airport Development Fee and MVR 1.15 billion from registration and licence fees. Property income totalled MVR 2.44 billion, driven mainly by MVR 1.74 billion in resort rent and MVR 558.3 million from land acquisition and conversion fees. Resort rent continues to be a stable and significant source of income, reflecting the strength of the Maldives’ high-end resort segment and the sustained attractiveness of the destination to global travellers. However, dividends from state-owned enterprises declined to MVR 662.5 million, moderating overall non-tax revenue growth.
Grant inflows remained limited, amounting to MVR 301.5 million, roughly half the level recorded at the same point in 2024. With lower external grant support, a larger share of government operations is being financed through domestic revenue and borrowing, placing greater emphasis on efficient revenue collection and prudent fiscal management.
On the expenditure side, recurrent spending continued to dominate, reaching MVR 33.4 billion, slightly higher than last year. Salaries, wages and pensions accounted for MVR 13.38 billion, while administrative and operational expenses stood at MVR 19.96 billion. Transfers, grants and subsidies remained substantial at MVR 9.75 billion, including MVR 2.09 billion allocated for Aasandha and MVR 3.43 billion in subsidies. These commitments reflect ongoing social and public service obligations that form the core of government spending.
Capital expenditure remained comparatively low at MVR 5.56 billion, down sharply from MVR 12.37 billion in 2024. By Week 48, capital budget utilisation stood at around 44 percent, while recurrent expenditure utilisation exceeded 90 percent. Infrastructure asset spending amounted to MVR 4.91 billion, including MVR 2.03 billion for roads, bridges and airports, and MVR 1.61 billion for land and buildings. The figures indicate a cautious pace of project execution, even as some strategic infrastructure investments continue.
Public Sector Investment Program data shows uneven spending across sectors. Transport accounted for MVR 4.42 billion, largely driven by airport development projects totalling MVR 3.20 billion, which support both tourism growth and national connectivity. Environmental protection spending reached MVR 632.1 million, while water and sewerage projects accounted for MVR 322.2 million. Housing and infrastructure spending remained relatively modest at MVR 196.9 million. Land reclamation and road construction together amounted to MVR 698.6 million, including MVR 449.9 million for reclamation works, suggesting selective progress across major development priorities.
Despite the overall deficit, the government recorded a primary surplus of MVR 2.52 billion, indicating that revenues exceeded non-interest expenditure. However, financing and interest costs amounting to MVR 4.54 billion shifted the balance into an overall deficit of MVR 2.02 billion. This highlights the continued impact of debt servicing on public finances, even as operational performance improves.
Debt-related pressures were further reflected in loan repayments of MVR 5.16 billion, more than double the level recorded at the same point last year. Transfers to the Sovereign Development Fund reached MVR 2.50 billion, also significantly higher than in 2024. While these measures strengthen longer-term fiscal resilience, they absorb resources that could otherwise support faster capital project execution.
As of mid-December 2025, total government securities outstanding stood at MVR 98.5 billion, comprising MVR 89.3 billion in domestic instruments and MVR 9.25 billion in external instruments. A substantial portion of this debt is concentrated in shorter maturities, increasing refinancing requirements and associated interest costs. Treasury Bills outstanding amounted to MVR 39.6 billion, while Treasury Bonds stood at MVR 27.7 billion, alongside USD-denominated bonds.
The Ministry of Finance and Planning also noted that expenditure figures reflect posted transactions, which may not yet have been settled in cash. This is an important consideration when assessing short-term fiscal movements, particularly for large payments related to interest, contractors, and transfers. Overall, the latest fiscal data points to a steadier revenue position supported by a strong tourism and resort sector, while underscoring the need to balance development spending and manage debt-related obligations to sustain long-term economic stability.
advertisment
advertisment
