In a remarkable testament to President Dr. Mohamed Muizzu’s fiscal prudence and reform-oriented leadership, the government has achieved a significant budget surplus of MVR 1.5 billion as of May 15, 2025. This financial milestone, highlighted in the Ministry of Finance’s latest Weekly Fiscal Developments report, underscores a positive turnaround in public finance management under the current administration.
According to the report, total cumulative revenues and grants have reached MVR 14.4 billion, comfortably outpacing total expenditure of MVR 12.9 billion during the same period. This is the clearest indicator yet of President Muizzu’s success in curbing excess expenditure while maximising state revenue streams.
Tourism Fuels Revenue Boom
A major driver of the revenue surge is the impressive growth in tourism-related taxes. The Tourism Goods and Services Tax alone brought in MVR 4.7 billion, outpacing all other sectors and reaffirming the government’s strategy to elevate tourism as the economic backbone. The overall revenue from goods and services taxes reached MVR 6.6 billion, a strong sign of growing consumer and business confidence across the nation.
Non-Tax Revenue Rises Sharply
Non-tax revenues also saw a dramatic uptick—climbing from MVR 2.3 billion in the same period last year to MVR 3.1 billion in 2025. Fees, charges, resort rent, and airport development fees significantly contributed to the growth, reflecting the administration’s strategic diversification of income sources.
Tightened Spending, Smarter Governance
While revenue expanded, the government also reined in spending with precision. Total expenditure dropped from MVR 16.2 billion in May 2024 to MVR 12.9 billion this year—a 20.3% reduction. Recurrent expenditure, particularly administrative costs, was streamlined without compromising critical services such as healthcare, education, and social protection.
Despite reductions, targeted subsidies and essential programs such as Aasandha, council grants, and pension allocations remained robust. Notably, spending on subsidies was reduced by nearly MVR 400 million compared to the previous year, a clear sign of increased efficiency in welfare delivery.
Capital Projects Now More Strategic
Capital expenditure saw a controlled but impactful investment strategy, with MVR 1.1 billion allocated for infrastructure, housing, and public works. Key sectors like transport, coastal protection, and education received targeted injections, ensuring development continues sustainably while avoiding financial excesses.
Primary Balance Swings to Positive
Perhaps most noteworthy is the dramatic shift in the country’s primary fiscal balance—from a deficit of MVR 691 million in May 2024 to a surplus of MVR 3.3 billion in 2025. This sharp turnaround is a direct result of President Muizzu’s firm grip on budget execution, project prioritisation, and anti-waste policies.
A Vision Realised
This fiscal triumph comes as no surprise to observers of the administration’s economic policy. From the outset, President Muizzu pledged to restore fiscal discipline and transparency while accelerating economic development. The latest figures validate that commitment—and show that the Maldives is on a solid path to financial sustainability.
As the country navigates a global economic landscape marked by uncertainty, this budget surplus signals that the Maldivian economy, under the stewardship of President Muizzu, is not only resilient but thriving.
