In a remarkable show of economic discipline and strong revenue generation, the Maldives has recorded a budget surplus of MVR 1.2 billion as of 29 May 2025, according to the latest Weekly Fiscal Developments report issued by the Ministry of Finance.
The figures highlight the administration’s growing success in balancing development ambitions with fiscal responsibility—a core pillar of President Dr Mohamed Muizzu’s economic reform agenda.
Tax Windfalls and Rising Collections
The government’s total revenue and grants reached MVR 16.5 billion, outpacing cumulative expenditure of MVR 15.3 billion for the same period. This positive balance reflects a 7.6% year-on-year revenue increase.
At the heart of this surge is a boost in Tourism Goods and Services Tax (TGST), which generated MVR 5.5 billion, further cementing the sector’s status as the Maldives’ economic backbone. Green tax collections nearly doubled compared to last year, reaching MVR 957.8 million, while non-tax revenues grew sharply to MVR 3.5 billion, driven by resort rents, property income, and increased airport development fees.
Prudent Spending and Strategic Investment
Total government expenditure stood at MVR 15.3 billion, showcasing tight control in administrative and operational costs while ensuring continued delivery of essential services. Of this, MVR 13.9 billion went towards recurrent expenditure, primarily for salaries, pensions, and subsidies such as Aasandha.
Capital expenditure remained modest at MVR 1.4 billion, reflecting a deliberate strategy to prioritize high-impact development projects under the Public Sector Investment Program (PSIP), including airport infrastructure, bridges, and coastal protection. These projects, although scaled carefully, are aligned with the government’s long-term development blueprint.
Primary Surplus Signals Economic Strength
Most notably, the report reveals a primary surplus of MVR 3.3 billion—a powerful indicator of sound fiscal health excluding debt servicing. This turnaround, from a deficit of over MVR 900 million during the same period in 2024, underscores President Muizzu’s successful effort to reverse years of structural imbalances.
Finance Ministry officials credit this shift to robust revenue performance, leaner state operations, and enhanced compliance by both the public and private sectors.
Investment in the Future
Transfers to the Sovereign Development Fund also increased to MVR 897.5 million, reflecting a commitment to national savings and future financial resilience. Strategic investments rose to MVR 1.5 billion, while loan repayments more than doubled year-on-year, standing at MVR 2.6 billion—further proof of improved fiscal discipline.
A Message of Confidence
The latest fiscal snapshot reinforces investor and public confidence in the government’s stewardship of the national economy. As President Muizzu continues to modernize infrastructure and strengthen the welfare state, these figures point to a future shaped by growth, stability, and self-reliance.
“This is not just a budget surplus—it’s a signal that the Maldives is entering a new era of disciplined growth and sustainable prosperity,” said a senior official from the Finance Ministry.
With continued reforms and disciplined governance, the Maldives is well-positioned to deliver on its development promises without compromising financial integrity.
