The Maldivian government has posted a budget surplus of MVR 534.6 million so far this year, a remarkable turnaround from the MVR 5.29 billion deficit recorded during the same period in 2024, according to the Ministry of Finance and Planning’s latest Weekly Fiscal Development Report.
Sharp Recovery in Primary Balance
The report revealed that the primary balance — which factors in financing and interest payments — reached MVR 3.33 billion, compared to a primary deficit of MVR 2.33 billion in the corresponding period last year. The figures highlight significant progress in fiscal management and improved revenue inflows.
Revenue Performance
Government revenue stood at MVR 25.31 billion, driven primarily by tax collections.
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Tax revenue: MVR 19.71 billion, with the bulk coming from Tourism Goods and Services Tax (TGST), General Goods and Services Tax (GST), and Corporate Income Tax.
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Non-tax revenue: MVR 5.39 billion, mainly from resort lease rents, airport development fees, and registration and licensing charges.
Spending Trends
Expenditure during the same period reached MVR 24.77 billion, which included:
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MVR 21.65 billion in recurrent spending (salaries, wages, employee allowances, and pensions).
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MVR 3.12 billion allocated for capital projects.
Despite the sizeable recurrent expenditure, careful balancing of revenues and spending has enabled the government to maintain a surplus.
Strengthening the Sovereign Development Fund
The report also noted a substantial increase in contributions to the Sovereign Development Fund (SDF), which now totals MVR 1.34 billion. This represents a 46.7% increase from the MVR 916.3 million recorded during the same period last year. The Fund is earmarked to support future debt repayments — a stated priority of the current administration.
A Positive Fiscal Signal
The surplus marks a significant shift in fiscal stability, underlining stronger revenue streams and tighter expenditure management. Officials say the government remains committed to sustaining this positive trajectory, with an emphasis on reducing debt vulnerabilities and maintaining long-term financial security.
