The Maldives has recorded a budget surplus in the first quarter of 2025, with state revenue outpacing expenditure as the government’s economic reform and austerity measures begin to bear fruit.
According to the Ministry of Finance and Planning’s latest Weekly Fiscal Development Report, total revenue as of March 13 stood at USD 505.8 million—up 5.4% from the USD 479.9 million recorded during the same period last year. Meanwhile, government spending amounted to USD 421.5 million, reflecting a 16% drop compared to the previous year.
The report highlights that tax revenue made up the bulk of income, reaching USD 408.5 million. Non-tax revenue contributed USD 97.3 million, while grants totaled USD 2.8 million.
The majority of expenditure—USD 395.6 million—was allocated toward recurrent costs, such as salaries and administrative expenses. Capital spending, which includes investments in infrastructure and development projects, totaled USD 27.8 million.
This positive fiscal performance marks a notable shift in the country’s financial trajectory and signals early success for the administration’s reform agenda. The government has pledged to reduce public debt and bring greater discipline to state spending through targeted austerity measures and policy overhauls.
Officials say the surplus reflects not just stronger revenue collection but also a deliberate effort to curb unnecessary spending and prioritize long-term financial stability.
