News Desk
MALE’ — The Maldives government managed its full year of state expenditure within the original approved budget in 2025, the Ministry of Finance has said, marking the first time in five consecutive years the government has not needed to seek a supplementary budget from parliament to cover overspending.
The finding comes from the Budget Output Statement 2025, released by the Finance Ministry. From 2021 through 2024, the government sought supplementary budget approvals every year. In 2025 it did not.
Total state expenditure for the year came in at MVR 44.2 billion against an originally projected MVR 49.2 billion, a reduction of MVR 5 billion. The underspend was driven primarily by tighter budget controls and structural changes to how Public Service Infrastructure Programme projects were implemented.
On the revenue side, the government collected MVR 39.9 billion in revenue and grants, marginally exceeding the MVR 39.8 billion forecast by MVR 74.4 million. The growth was led by non-tax revenues including resort lease extension fees, land sales and transfer fees and work permit fees.
Tourist arrivals came in fractionally below target at 2,246,516 against a projected 2,248,120, a 0.1 percent shortfall. The gap was offset by higher bed nights, meaning tourists who arrived stayed longer than forecast, which kept tourism revenue on track.
The combination of lower spending and steady revenue produced a significant improvement in the fiscal deficit. The budget had projected a deficit of MVR 9.4 billion. The actual deficit came in at MVR 4.4 billion, a MVR 5 billion improvement and the lowest fiscal deficit the Maldives has recorded in six years. In GDP terms the deficit fell by 6.3 percentage points year on year. The ministry also said 2025 recorded the highest state revenue generated between 2019 and 2025.
Total public debt stood at MVR 154.9 billion at the end of 2025, equivalent to 129.8 percent of GDP. The government spent MVR 10.1 billion on debt servicing and repayment during the year.
The numbers represent a meaningful improvement in the government’s fiscal position. The debt level, at nearly 130 percent of GDP, remains high by any standard and continues to limit the government’s room to manoeuvre. But closing a year within budget, reducing the deficit by half against forecast and posting record revenue are figures the Finance Ministry can point to as evidence that the consolidation effort is producing results.
