The Ministry of Finance and Planning has reported that State budget expenditure up to 9 September 2025 declined by 15.5 per cent compared to the same period last year, while revenue increased by 8 per cent.

According to the ministry’s latest Weekly Fiscal Development Report, MVR 25.4 billion was spent from the budget so far this year, significantly lower than the previous year. The decline was largely attributed to a 57.7 per cent reduction in capital expenditure.

Of total recurrent expenditure, 56.7 per cent was spent on administrative costs of Government offices, representing a 4.5 per cent decrease compared with 2024. Spending on office equipment fell by 15.5 per cent, repair and maintenance costs dropped by 10 per cent, and transportation costs were down by 5.8 per cent. Subsidy expenditure also decreased by 7 per cent year-on-year.

By the end of last week, MVR 3.3 billion had been spent on capital projects, with MVR 2.9 billion allocated to infrastructure works such as roads, bridges and airport development. Under the Public Sector Investment Programme (PSIP), MVR 12.4 billion was allocated for 2025, but only MVR 4.1 billion has been spent to date. The bulk of this year’s PSIP spending, totalling MVR 2.6 billion, has gone towards project management, while MVR 131.6 million has been directed to housing. Overall, 80 to 86 per cent of construction progress has been reported on key housing towers in Hulhumalé Phase II.

On the revenue side, the State collected MVR 26.3 billion in income and grants by 9 September, representing an 8 per cent increase over last year. Of this, MVR 20.5 billion was generated through taxation, accounting for 78 per cent of total revenue.

Tourism-related income recorded strong growth, with Green Tax revenue up 104.6 per cent, departure tax up 57.9 per cent, and airport development fees rising by 56.8 per cent. The Government noted that more than 1.5 million tourists had arrived in the Maldives so far this year, a 9.9 per cent increase compared with 2024.

Other sources of revenue, including lease extensions, resort rents, and land acquisition fees, also saw notable increases. As a result, contributions to the Sovereign Development Fund rose by 47.9 per cent, reaching MVR 4 billion.

The Ministry of Finance and Planning said that by early September, the State had achieved 66.1 per cent of its projected annual revenue, compared with 51.7 per cent recorded during the same period last year.