Government Revenue Rises While Expenditure Declines

The government’s financial performance has shown significant improvement, with revenue increasing and expenditure decreasing in the first three months of 2025, according to the latest figures released by the Ministry of Finance and planning.

As of March 13, government revenue stood at MVR 7.9 billion, marking an increase of MVR 400 million or 5% compared to the MVR 7.5 billion recorded during the same period last year. The rise in revenue was primarily driven by a boost in both tax and non-tax income. Tax revenue increased by MVR 118 million, while non-tax revenue saw a more substantial rise of MVR 282 million. Additionally, the government received MVR 15.2 million more in grants compared to the previous year.

The increase in revenue comes after concerns were raised in January and February over a decline in government income. However, the latest data indicates a recovery, with income surpassing expenditure and resulting in a budget surplus of MVR 2.5 billion.

On the expenditure front, government spending declined significantly, dropping to MVR 6.5 billion. This represents a decrease of MVR 1.3 billion compared to the same period last year. Recurrent expenditure fell slightly from MVR 6.3 billion to MVR 6.1 billion, while capital expenditure saw a more substantial reduction, decreasing from MVR 1.6 billion to MVR 429 million. Spending on major development projects under the Public Sector Investment Program (PSIP) also declined from MVR 1.6 billion to MVR 577 million.

Despite the overall reduction in spending, some expenditure categories saw an increase. Salaries and allowances for government employees rose from MVR 1.9 billion to MVR 2.1 billion, while healthcare spending under the Aasandha scheme increased from MVR 402 million to MVR 534 million.

For 2025, the parliament has approved a budget of MVR 56.6 billion, with projected revenue and grants amounting to MVR 39.8 billion. While the current financial data indicates a positive trend, maintaining a surplus will depend on sustained revenue growth and controlled expenditure in the coming months.