The Maldives has recorded a notable improvement in its budget balance, with a surplus of MVR 1.10 billion reported as of June 5, 2025. This marks a significant turnaround from the same period last year, when the Government recorded a budget deficit of MVR 4.26 billion.

According to the latest Weekly Fiscal Development Report by the Ministry of Finance and Planning, the primary balance, which excludes financing and interest costs, reached MVR 3.16 billion. This is an improvement from the primary deficit of MVR 2.16 billion recorded at the same time in 2024.

Goods and Services Tax (GST) contributed the largest share to tax revenues, accounting for approximately 60 per cent. Non-tax revenues were led by Fees and Charges totalling MVR 1.76 billion. These include Airport Development Fees and Expatriate Quota Fees.

On the expenditure side, administrative and operational expenses accounted for MVR 8.1 billion, representing 52 per cent of the total recurrent and capital expenditure of MVR 15.6 billion. Meanwhile, MVR 6 billion was spent on salaries, wages and pensions, making up 38.5 per cent of the total.

Among Government offices, the Ministry of Education had the highest budget utilisation at MVR 1.5 billion, followed by the National Social Protection Agency with MVR 1.4 billion and the Ministry of Construction, Housing and Infrastructure with MVR 1.1 billion.

The Sovereign Development Fund increased by 46.7 per cent from MVR 6.16 million to MVR 9.03 million, reflecting continued commitment to strengthening debt repayment capacity.

Credit rating agency Moody’s maintained the Maldives' rating at Caa2 in May, citing the Government’s sustained fiscal reforms. In March 2025, the Maldives repaid a foreign loan of USD 100 million, demonstrating progress in reducing external debt obligations.