The Government has recorded a budget surplus of MVR 1.05 billion as of 17 July 2025, supported by improved revenue collection and a sharp reduction in Government expenditure.

According to the latest Weekly Fiscal Development report published by the Ministry of Finance and Planning, the surplus remains positive even after accounting for financing and interest payments. When these are excluded, the surplus stood at MVR 3.4 billion.

Total revenue reached MVR 20.5 billion by mid-July, reflecting a 7.9 per cent increase compared to MVR 19 billion during the same period last year. The rise was driven by gains in both tax and non-tax income. Tax revenue rose moderately, increasing 4.5 per cent to MVR 15.6 billion, up from MVR 15 billion last year. In contrast, non-tax revenue showed stronger growth, jumping 27.5 per cent to MVR 4.7 billion from MVR 3.7 billion.

While revenue grew steadily, the Government’s efforts to rein in expenditure played a more decisive role in shaping the fiscal balance. Total expenditure declined by 17.9 per cent, falling from MVR 23.7 billion last year to MVR 19.4 billion this year.

The Government also demonstrated its commitment to debt servicing during the period, with total costs rising to MVR 5.7 billion. This included MVR 3.3 billion in loan repayments and MVR 2.4 billion in financing and interest payments. In comparison, debt servicing stood at MVR 3.8 billion during the same period last year, with just MVR 1.3 billion spent on loan repayments.

Despite the rise in debt-related expenses, the Government was able to maintain a surplus, highlighting both improved revenue performance and the impact of controlled public spending.