Government Records MVR 3.4 Billion Budget Surplus Amid Decline in Spending

The government has recorded a substantial budget surplus of MVR 3.4 billion as of April 10, 2025, according to the latest Weekly Fiscal Development report released by the Ministry of Finance. This marks a significant fiscal turnaround, attributed to higher revenue inflows and a sharp reduction in expenditure.

State revenue reached MVR 11.2 billion by April 10, up from MVR 10.7 billion during the same period in 2024. At the same time, government spending fell to approximately MVR 9 billion, a notable drop from MVR 11.8 billion recorded in the corresponding period last year. As a result, the primary budget balance rose from MVR 351.6 million in 2024 to MVR 3.4 billion in 2025. The total budget balance also shifted from a deficit of MVR 1.1 billion last year to a surplus of MVR 2.1 billion this year.

The report noted a rise in non-tax income, which reached MVR 2.5 billion, up from MVR 1.9 billion in 2024. Grants also increased modestly to MVR 56 million from MVR 43.6 million. Tax revenue, however, registered a slight decrease, totaling MVR 8.7 billion compared to MVR 8.8 billion last year.

Tourism-related taxes continued to play a crucial role in revenue generation. Collections from the Tourism Goods and Services Tax (TGST) climbed to MVR 3.6 billion, up from MVR 3.1 billion in the same period last year. Green Tax revenue rose significantly to MVR 556.9 million, compared to MVR 327.2 million in 2024.

Deposits to the Sovereign Development Fund also saw growth, with MVR 437.1 million deposited by April 10, up from MVR 342 million a year earlier. Meanwhile, loan repayments more than doubled, reaching MVR 2.4 billion compared to MVR 847.9 million during the same period last year.

The Ministry of Finance’s data highlights a stronger fiscal position for the government, reflecting more disciplined spending and improved revenue performance amid ongoing economic recovery efforts.