According to the latest Weekly Fiscal Development Report released by the Ministry of Finance and Planning, the Maldivian government spent MVR 3.9 billion on development projects and MVR 9.4 billion on salaries and wages by the end of August 2025.

The report notes that the government’s financial accounts recorded a surplus of MVR 534.6 million by the end of August, largely due to a significant slowdown in capital expenditures outlined in the approved budget.

Total revenue and grants for the period sat at MVR 25.3 billion, while total expenditure amounted to MVR 24.8 billion.

Tax revenue reached MVR 19.7 billion, with the Tourism Goods and Services Tax (TGST) contributing MVR 7.2 billion, and Green Tax contributing MVR 1.4 billion. Non-tax revenue totaled MVR 5.4 billion, driven primarily by fees, charges, and resort lease payments.

On the expenditure side, recurrent expenses rose to MVR 21.7 billion, mainly due to the MVR 9.4 billion allocated for salaries, wages, and pensions. In contrast, capital expenditure stood at just MVR 3.1 billion, a sharp decline from the MVR 7.3 billion spent during the same period last year. The report attributes this reduction to a notable slowdown in infrastructure project spending.

Further, only MVR 3.9 billion has been utilized from the approved MVR 12.4 billion allocation for the Public Sector Investment Program (PSIP), highlighting the slower-than-expected pace of development spending.