The Government has reduced total expenditure by MVR 5.5 billion compared to the previous year, according to the latest financial figures released by the Ministry of Finance.

Between January 1 and October 16, 2025, Government revenue increased by MVR 2.3 billion compared to the same period last year, representing an 8.4 per cent rise. Total revenue reached MVR 30.6 billion this year, compared to MVR 28.2 billion during the same period in 2024.

Meanwhile, total glGovernment expenditure fell sharply from MVR 35.9 billion last year to MVR 30.4 billion this year, a 15.2 per cent year-on-year decline.

Despite the overall reduction in spending, expenditure on public debt servicing rose significantly. Loan repayment costs increased from MVR 2 billion last year to MVR 4.4 billion this year. Interest and financing expenses remained steady at MVR 3.9 billion. As a result, total debt servicing expenditure reached MVR 8.3 billion this year, up from MVR 5.9 billion last year.

While debt repayment has risen, the Government has maintained a positive fiscal position, keeping the budget debt-free at MVR 186.7 million.

The Sovereign Development Fund also recorded an increase in receipts, rising from MVR 1.1 billion last year to MVR 1.6 billion this year.

According to the Finance Ministry, despite higher debt servicing costs, the Government’s financial position continues to improve due to strict expenditure control and sustained revenue growth.