Maldives Achieves Fiscal Turnaround with Budget Surplus

The Maldives has recorded a budget surplus of USD 142.67 million as of 17 April, a sharp turnaround from the USD 103.76 million deficit during the same period last year. This significant shift reflects the government’s focused strategy to cut spending and strengthen revenue streams.

According to the Ministry of Finance and Planning’s latest ‘Weekly Fiscal Developments’ report, state revenue rose to USD 758.55 million—an increase of USD 45.39 million compared to last year. Withholding tax remained the top revenue generator, while the Tourism Goods and Services Tax (TGST) brought in USD 239.78 million, up from USD 220.37 million. Other key contributors included the Green Tax, which rose to USD 37.13 million from USD 21.72 million, and the Airport Development Fee, which increased to USD 29.35 million.

Meanwhile, government spending fell to USD 615.85 million from USD 823.52 million. Administrative expenses dropped to USD 337.13 million, and capital expenditure saw a steep decline to USD 48.17 million from USD 207.46 million. However, spending on salaries and pensions slightly increased, reaching USD 233.35 million.

President Dr. Mohamed Muizzu credited the surplus to disciplined fiscal management, stressing the need to move away from a culture of overspending. He affirmed that ongoing reforms will not hinder development or public services and remain key to achieving long-term economic stability.