Expenses exceed income; development spending low while administrative costs remain high
Government deficit reached MVR 1.43 billion by November 2025
Minister of Finance and Planning Moosa Zameer presenting Budget for 2026 to the parliament
Statistics released by the Ministry of Finance and Planning have revealed that the state’s expenditure has surpassed its income.
A significant portion of this expenditure is allocated to administrative costs, while spending on development remains notably low.
According to the latest financial reports on the nation’s fiscal status, as of 27 November 2025, the government has accumulated a total deficit of MVR 1.43 billion.
The Ministry of Finance and Planning has reported that the government has received MVR 34.9 billion in revenue and grants so far this year, with the largest component coming from the Tourism Goods and Services Tax (TGST). Non-tax revenues have also shown an increase.
Total expenditures have reached MVR 36.4 billion, driven primarily by a rise in salaries and wages, which are categorized under recurrent expenditures.
Recurrent expenditure currently stands at MVR 31.2 billion, covering employee-related costs and administrative expenses.
In contrast, capital expenditure is only MVR 5.2 billion, less than half of the total capital expenditure approved for the year, with just a few weeks remaining.
The figures also indicate that Public Sector Investment Program (PSIP) expenditures, which include development projects, remain remarkably low.
Spending on housing, land reclamation, environmental protection, health services and education within the PSIP has fallen short of expectations.
