business

Finance data exposes budget surplus masked a sharp drop in development spending

As of mid-March 2026, the state budget recorded a surplus of MVR 2.10 billion, driven by increased tax revenues and a significant reduction in government spending. While tax collections rose to MVR 7.73 billion, total expenditure fell to MVR 7.27 billion due to sharp declines in infrastructure development and debt servicing costs. Despite higher spending on salaries and subsidies, capital investment in transport and housing projects saw a notable decrease compared to the previous year.