The Government of Maldives has posted a budget surplus for the first seven months of 2025, marking a notable fiscal turnaround compared to the same period last year, according to the Ministry of Finance and Planning.

In its latest Weekly Fiscal Development Report, the ministry detailed that total revenue and grants collected between January 1 and July 31 amounted to USD 1.44 billion, a 2.7 percent increase from the USD 1.40 billion received during the same period in 2024.

Tax revenue contributed USD 1.11 billion to the total, while non-tax revenue accounted for USD 311.44 million.

Meanwhile, government expenditure during the same period totaled USD 1.42 billion reflecting a 17.4 percent decrease year-on-year.

Recurrent expenditure fell by 2.2 percent, and capital expenditure declined sharply by 60.8 percent.

Administrative operations of government offices absorbed 56.2 percent of recurrent spending, which is 7.3 percent lower than in 2024.

Expenditures on office supplies and maintenance saw notable reductions of 20.0 percent and 20.1 percent, respectively.

As of late July, USD 175.06 million had been spent on capital projects, with USD 149.21 million allocated specifically to infrastructure works, such as road construction, bridges, and airport development.

From the USD 804.80 million earmarked under the 2025 Public Sector Investment Programme (PSIP), USD 220.46 million has been utilized so far.

Within this allocation, USD 142.71 million was directed towards enhancing connectivity between islands, while USD 7.43 million was used for housing projects.

The government noted that improved policy oversight of PSIP implementation contributed to a reduction in overall programme expenditure.

The fiscal report indicates that the state budget maintained a surplus of USD 20.38 million from January to July 2025 a significant improvement from the USD 415.06 million deficit recorded during the same period last year.

In 2023, the budget also registered a deficit of USD 272.37 million for the same timeframe.