The Maldivian Government has recorded a fiscal surplus of MVR 1.3 billion in the first 10 weeks of the 2025 financial year, with state revenue surpassing expenditure, according to the Ministry of Finance’s latest report.
The government’s revenue between January 1 and March 13 amounted to MVR 7.8 billion, outpacing its expenditure of MVR 6.5 billion during the same period. This marked a positive financial trend, as revenue increased by 5.4% compared to the first quarter of 2024, which saw a total revenue of MVR 7.4 billion.
A key factor in this increase was a rise in tax revenue, which contributed MVR 6.3 billion of the total revenue. Non-tax revenue also saw a solid contribution of MVR 1.5 billion, while the government received MVR 43.9 million in grants, as reported by the Ministry of Finance.
On the expenditure side, the government’s spending decreased by 16% compared to the previous year. In the first 10 weeks of 2024, government expenditure amounted to MVR 7.8 billion, but for the current year, it stood at MVR 6.5 billion. Recurring expenses accounted for MVR 6.1 billion, while capital expenditure during this period was recorded at MVR 428 million.
The reduction in expenditure alongside the increase in revenue reflects the government’s focus on improving financial discipline. This effort is in line with President Dr Mohamed Muizzu’s commitment to curbing long-standing issues related to excessive government spending. Since taking office, President Muizzu has made economic recovery a top priority for his administration. In his Presidential Address earlier this year, he emphasized the need for prudent financial management and addressed the challenges posed by previous fiscal policies.
As the government continues to manage its fiscal operations with a keen focus on reducing expenditure and increasing revenue, this early surplus sets a promising tone for the remainder of the financial year.
