The Maldives recorded a fiscal surplus of MVR 534.6 million as of 28 August 2025, according to the Ministry of Finance’s latest Weekly Fiscal Developments. Strong revenues, particularly from tourism, offset lower capital spending and high recurrent costs.
Total revenue and grants reached MVR 25.3 billion, with tax revenues contributing MVR 19.7 billion. The Tourism Goods and Services Tax (TGST) provided the biggest boost, rising to MVR 7.2 billion from MVR 6.6 billion last year. Non-tax revenues also increased to MVR 5.4 billion, though external grants fell sharply to MVR 203 million.
Government expenditure stood at MVR 24.8 billion, just over half of the approved annual budget. Recurrent expenses, including salaries, pensions, and welfare, dominated at MVR 21.7 billion, while capital spending dropped to MVR 3.1 billion, reflecting slower progress on infrastructure and housing projects.
Outstanding government debt remains significant, with MVR 95.4 billion in securities, mostly held domestically. Despite a primary surplus of MVR 3.3 billion, financing and interest payments of nearly MVR 2.8 billion continue to strain the budget.
Officials highlighted the importance of sustaining tourism revenues while diversifying income sources. Economists warn that the country’s fiscal stability remains highly exposed to external shocks in the tourism sector.
