State deficit hits MVR 950m as spending surges past MVR 28bn
21 އޯގަސްޓު 2026 | ހުކުރު 10:00Maldives recorded MVR 27.1 billion in revenue, primarily from tax collections, while recurrent costs reached MVR 24.5 billion. Capital spending on infrastructure totaled MVR 3.6 billion, a 30 percent decrease from the previous year. Domestic borrowing through state securities reached MVR 99 billion, led by local currency Treasury Bills
Minister of Finance and Public Enterprises Hassan Zareer (R) | Finance Ministry
State spending surpassed MVR 28.1 billion by August 13, leaving the government with a fiscal deficit of MVR 950.3 million, according to weekly fiscal data from the Ministry of Finance and Public Enterprises. This level of spending reflects a 19.3 percent rise compared to the MVR 23.5 billion disbursed during the identical timeframe in 2025.
Data released by the Ministry of Finance and Public Enterprises shows that total state receipts, including foreign aid, stood at MVR 27.1 billion. Tax collections made up the lion's share at MVR 21.1 billion, driven primarily by the Goods and Services Tax (GST), which brought in MVR 10.7 billion. Tourism Goods and Services Tax (TGST) accounted for MVR 7.2 billion of that GST figure. Meanwhile, non-tax collections generated MVR 5.6 billion, and grant assistance contributed MVR 460.4 million.
On the outflow side, recurrent operational costs consumed MVR 24.5 billion. This comprised MVR 9.4 billion dedicated to civil compensation and employee allowances, alongside MVR 15 billion for running public administration. Among operational expenditures, government subsidies formed the single largest cost at MVR 3.5 billion, while the state health insurance scheme, Aasandha, required MVR 1.4 billion.
Development-related capital spending totaled MVR 3.6 billion, with MVR 3.1 billion directed toward infrastructure projects. This included MVR 1.2 billion for land dredging and structural building works, alongside MVR 864.1 million for highways, bridges, and aviation hubs. Economic sector initiatives secured the highest share of funding within the Public Sector Investment Program (PSIP). However, total PSIP spending of MVR 3.6 billion represents a 30 percent contraction from the MVR 5.2 billion spent across the same months in 2025.
Among individual state bodies, the Ministry of Education, Higher Education, and Skills Development recorded the highest fund usage at MVR 3.2 billion. The Ministry of Infrastructure, Housing, and Urban Development followed with MVR 2.4 billion, while the National Social Protection Agency (NSPA) disbursed MVR 2.1 billion, and the Maldives Police Service utilized MVR 1.6 billion.
On the domestic borrowing front, the cumulative value of issued state securities reached MVR 99 billion by August 10, 2026. Local currency Treasury Bills formed the primary component at MVR 41.4 billion, heavily backed by commercial banking institutions, alongside MVR 33.7 billion in Treasury Bonds and MVR 13.1 billion in US Dollar Treasury Bonds.
