The Government has recorded a budget surplus of MVR 2.1 billion as of April 10, 2025 - a significant turnaround from the MVR 1.1 billion deficit recorded during the same period last year.

The improved fiscal position is attributed to a combination of revenue growth and a sharp decline in expenditure, despite rising debt servicing costs.

According to the Ministry of Finance and Planning’s Weekly Fiscal Developments report, total revenue and grants collected by the State reached MVR 11.2 billion, representing a 4.9 per cent increase from MVR 10.7 billion during the same period in 2024. In contrast, total expenditure dropped to MVR 9.1 billion, down 23 per cent from MVR 11.8 billion last year.

The primary balance, which excludes interest payments and financing expenses, stood at MVR 3.37 billion, a sharp rise from MVR 351.6 million a year earlier.

Debt servicing costs, however, rose considerably. Loan repayments reached MVR 2.44 billion, a 188 per cent increase compared to MVR 847.9 million during the same period last year.

Tax revenue remained the Government’s main source of income, totalling MVR 8.7 billion. This included MVR 3.6 billion from Tourism Goods and Services Tax (TGST), up from MVR 3.3 billion in 2024. Green Tax revenue also rose sharply to MVR 556.9 million, compared to MVR 327.2 million a year ago.

On the spending side, recurrent expenditure remained high at MVR 8.4 billion, while capital expenditure dropped significantly to MVR 693.3 million, marking a decline of more than 76 per cent from MVR 2.97 billion last year. Deposits to the Sovereign Development Fund (SDF) increased to MVR 437.1 million, up from MVR 342 million in 2024.

The Government attributed the surplus to tighter financial discipline, improved public finance management, and reduced discretionary spending.