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Over MVR 6 billion spent on debt servicing; MVR 1.4 billion surplus recorded

25 Aug 2025

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MM

Ministry of Finance--- Photo: Avas

Statistics from the Ministry of Finance and Planning show that despite spending over MVR 6 billion on debt servicing, the Government recorded a budget surplus of MVR 1.4 billion without incurring a deficit.

According to the latest publication of Weekly Fiscal Developments, the Government generated MVR 23.7 billion in revenue up to August 7, 2025, a year-on-year increase of approximately 8.22 per cent compared to MVR 21.9 billion during the same period last year.

Expenditure during the same period saw a notable decrease, falling from MVR 26.7 billion last year to MVR 22.3 billion this year, representing a reduction of around 16.5 per cent.

However, spending on debt servicing rose significantly, from MVR 4.3 billion last year to MVR 6.5 billion this year. Despite the increased allocation for debt obligations, the Government has maintained a surplus, signalling prudent fiscal management. Analysts note that if this trend continues, it could contribute to an improved national credit rating.

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