Maldives finances closed Week 45 on an encouraging upward trajectory, with new figures from the Ministry of Finance confirming stronger than expected revenue performance and a sharply reduced fiscal deficit. The latest Weekly Fiscal Developments report shows cumulative revenue and grants reaching MVR 34.97 billion, reflecting sustained economic recovery and improving sectoral activity across the country.
The overall deficit narrowed to just MVR 1.44 billion, signalling far more resilient public finances compared to the same period last year. The primary balance posted a surplus of MVR 2.78 billion, underscoring a healthier fiscal environment as the nation approaches year end.
Tourism and Non Tax Revenue Drive Upward Momentum
Revenue growth was led by strong inflows from Tourism Goods and Services Tax, which climbed to MVR 9.57 billion. The continued strength of the tourism sector, supported by high occupancy rates and rising visitor spending, reaffirmed its central role in powering the national economy.
Non tax revenues also posted solid gains, reaching MVR 8.56 billion, boosted by higher fees, airport development charges and property income. This diversification of revenue streams demonstrates improving operational efficiency across state entities.
Disciplined Spending Strengthens Fiscal Stability
Cumulative expenditure reached MVR 36.41 billion, well below the approved annual budget, reflecting prudent financial management. The government continues to prioritise essential services while maintaining strict oversight of recurrent spending.
Key highlights include:
- Stable operational spending at MVR 18.25 billion
- Salaries and pensions delivered smoothly, totalling MVR 12.92 billion
- Capital expenditure moderated at MVR 5.21 billion, ensuring sustainability while progressing key development projects
This disciplined spending approach contributed directly to the narrowing deficit and the positive primary balance.
Development Projects Advance Across the Nation
The Maldives Public Sector Investment Programme recorded MVR 7.18 billion in investments, signalling continuous progress in national development. Major areas of advancement include:
- Transport infrastructure such as airports and bridges, with the sector receiving MVR 4.37 billion
- Environmental protection projects, including coastal defences and renewable energy, totalling MVR 605.6 million
- Water and sewerage upgrades across islands worth MVR 305 million
- Land reclamation and road construction valued at MVR 664.9 million
These investments demonstrate the administration’s commitment to building long term resilience and expanding economic opportunity.
Key Sectors Maintain Strong Budget Utilisation
Several frontline sectors continued to utilise their budgets effectively. Among the top performing:
- Ministry of Construction, Housing and Infrastructure at MVR 3.45 billion
- Education sector at MVR 3.45 billion
- National Social Protection Agency at MVR 2.96 billion
- Security services, with Police and MNDF collectively exceeding MVR 4.17 billion
This efficient utilisation reflects active project implementation and continuity of essential public services.
Investor Confidence Remains Strong
The report also highlights MVR 97.19 billion in outstanding government securities, backed largely by domestic investors. The steady demand for Treasury Bills, Treasury Bonds and Islamic instruments signals growing confidence in the country’s economic direction and financial management.
A Positive Outlook for Year End
The Week 45 fiscal results position Maldives on a confident path as the year draws to a close. With revenues rising, expenditure managed responsibly and major development programmes progressing nationwide, the country enters December with renewed economic strength.
This trend marks a stronger fiscal foundation for 2026, further reinforcing the Maldives commitment to growth, stability and sustainable development.
