Nearly MVR 10 billion was spent in 2025 to service debt inherited from previous administration, according to statistics released by the Ministry of Finance and Planning.

Data from the Ministry’s Weekly Fiscal Development Report shows that as of 31 December 2025, a total of MVR 4.7 billion was spent on financing and interest costs, while loan repayments amounted to MVR 5.2 billion. Combined, total debt servicing costs for the year reached MVR 9.9 billion.

By comparison, loan repayments in 2024 stood at MVR 2.3 billion, while total debt servicing costs, including financing and interest expenses, amounted to MVR 6.9 billion. The figures indicate a significant year-on-year increase in debt repayment costs in 2025.

Total Government expenditure in 2025 was MVR 43.1 billion, down from MVR 48.2 billion in 2024. Revenue for the year reached MVR 39.6 billion. The primary balance recorded a surplus of MVR 1.2 billion in 2025, compared to a primary deficit of MVR 8.4 billion in 2024.

After accounting for financing and interest costs, the overall fiscal balance recorded a deficit of MVR 3.5 billion in 2025. This represents a substantial improvement from the MVR 13.1 billion deficit recorded in 2024.

The Government has been implementing measures to stabilise public finances following the economic challenges inherited from the previous administration. While debt repayments increased in 2025, foreign reserves also showed growth during the year. The reforms implemented by the Government contributed to Moody’s decision to revise the Maldives’ credit outlook from negative to stable.