The government’s ability to complete the 2025 fiscal year without introducing a supplementary budget represents a significant achievement that required a series of difficult policy decisions, Chief Government Spokesperson Mohamed Hussain Shareef (Mundhu) has said.
The remarks come after the Ministry of Finance and Public Enterprises released its Budget Outcome Statement 2025, which showed that state expenditure remained within the limits approved by Parliament throughout the year.
According to the report, 2025 became the first fiscal year in five years to conclude without the need for a supplementary budget, a practice that had become common in previous years as governments sought additional spending approvals during the course of budget implementation.
Finance Ministry figures show total government expenditure for 2025 was initially projected at MVR 49.2 billion. However, actual spending at the end of the year stood at MVR 44.2 billion, approximately MVR 5 billion below the original estimate.
Revenue performance also closely matched government projections. While the approved budget forecast MVR 39.8 billion in revenue and grants, actual collections reached MVR 39.9 billion by the end of the year.
Addressing the figures during the “Presser with Spox” event, Mundhu said the outcome reflected a deliberate effort to improve fiscal discipline and ensure spending remained aligned with approved budgets.
He noted that in previous years there had often been a considerable gap between budget forecasts and actual outcomes, making the close alignment achieved in 2025 particularly noteworthy.
“The biggest success is that the projections and the actual results were closely aligned. Revenue remained very close to what had been estimated, while expenditure was carefully managed and controlled to stay within budget,” Mundhu said.
The spokesperson attributed part of the outcome to economic and fiscal reforms implemented by the administration over the past year, including changes to tax policies and adjustments affecting the tourism sector, which remains the country’s largest source of revenue and foreign exchange earnings.
Tourism-related taxes have played an increasingly important role in government finances, particularly as authorities seek to strengthen revenue collection while reducing reliance on borrowing.
Mundhu acknowledged that some of the measures introduced by the government were not universally popular. However, he argued that such decisions were necessary to improve the country’s long-term fiscal position.
“Not every decision taken by a government will be welcomed by everyone. Some measures are difficult, but they must be taken with the future in mind,” he said.
According to the spokesperson, failure to implement those measures could have created greater financial challenges in the years ahead.
The government’s fiscal performance in 2025 also resulted in a significant reduction in the budget deficit. Finance Ministry data previously showed the deficit falling to MVR 4.4 billion, substantially lower than the level initially projected in the approved budget.
The report further noted that government revenues remained resilient despite fluctuations in some sectors, aided by strong collections from taxes, fees and non-tax revenue streams.
Officials have argued that maintaining tighter control over spending is an important part of broader efforts to strengthen public finances, improve debt sustainability and rebuild confidence in the country’s economic management.
The Maldives has faced increasing scrutiny over fiscal and debt-related challenges in recent years, prompting the government to introduce a range of expenditure controls and revenue-enhancing measures.
Mundhu said the latest budget outcome demonstrates that long-term fiscal management efforts are beginning to produce results, adding that maintaining budget discipline will remain a priority moving forward.
The Finance Ministry has previously stated that strengthening the country’s fiscal position, improving foreign currency reserves and enhancing debt repayment capacity remain among the government’s key economic objectives.
