Maldives Budget Deficit Widens to MVR 4.47 Billion as Primary Balance Turns Negative

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The Maldivian government's budget deficit widened by MVR 621.3 million in a single week, reaching MVR 4.47 billion by 29 October. The figures come from the week 43 Weekly Fiscal Developments report from the Ministry of Finance and Public Enterprises.

The deficit was MVR 3.85 billion in the previous report, which covered the period to 22 October. A year earlier, at 29 October 2025, it stood at MVR 768.4 million.

The primary balance, which leaves out interest and other financing costs, moved from a surplus of MVR 268.7 million at 22 October to a deficit of MVR 325.5 million. At the same point in 2025 it was a surplus of MVR 3.43 billion. Financing and interest costs so far this year were MVR 4.14 billion, slightly below the MVR 4.20 billion of a year earlier.

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Revenue and grants for the year reached MVR 34.52 billion, MVR 1.15 billion more than in the 22 October report. Tax accounted for MVR 964.3 million of that increase. Tourism Goods and Services Tax (TGST) rose by MVR 446.6 million to MVR 9.32 billion, the largest gain of the week, as the report notes. General Goods and Services Tax added MVR 169.7 million, business and property taxes MVR 104.6 million and green tax MVR 100.8 million.

Spending rose by MVR 1.77 billion in the week to MVR 38.99 billion. Most of that was salaries, wages and pensions, which rose by MVR 1.28 billion to MVR 13.33 billion. The report names salaries and wages as the largest increase of the week. The changes were similar in size to the same week last year, when revenue rose by MVR 1.19 billion, spending by MVR 1.75 billion and the deficit by MVR 559.2 million. The ministry says its figures are likely to change as reconciliation continues, so some of the differences between the two reports may be revisions.

Compared with last year, revenue and grants are 5.3% higher than the MVR 32.79 billion collected by 29 October 2025. Tax revenue rose 9.1% to MVR 26.70 billion, while non-tax revenue fell 8.8% to MVR 7.29 billion. Grants were MVR 526.1 million, against MVR 314.7 million.

Expenditure is 16.2% higher than the MVR 33.56 billion recorded last year. Recurrent spending rose 16.8% to MVR 33.68 billion and capital spending 12.0% to MVR 5.30 billion. Loan repayments, which the ministry lists separately from expenditure, were MVR 10.40 billion, 2.2 times the MVR 4.64 billion repaid by this point last year.

Spending under the Public Sector Investment Programme (PSIP), the government's development budget, was MVR 5.22 billion. That is 23.8% less than the MVR 6.85 billion spent a year earlier, and 62.8% of the MVR 8.31 billion approved for 2026. Transport infrastructure was the largest PSIP area at MVR 2.00 billion, compared with MVR 4.45 billion last year.

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The report's table of government agencies shows the Ministry of Education, Higher Education and Skills Development had used MVR 4.67 billion of its MVR 4.70 billion approved budget, or 99.3%. Six bodies show spending above their approved figures: the Ministry of Climate Change, Environment and Energy (MVR 313.2 million against MVR 81.2 million), the Ministry of Finance and Public Enterprises (MVR 370.3 million against MVR 244.9 million), the Local Government Authority (MVR 65.9 million against MVR 38.1 million), the Ministry of Fisheries, Agriculture and Ocean Resources (MVR 336.2 million against MVR 325.5 million), the Aviation and Port Security Command (MVR 235.3 million against MVR 213.7 million) and the Attorney General's Office (MVR 31.8 million against MVR 30.7 million). The report does not explain the differences.

Government securities outstanding totalled MVR 99.98 billion at 19 October, the same figure as in the previous report. Rufiyaa Treasury bills made up MVR 42.12 billion and rufiyaa Treasury bonds MVR 33.40 billion. US dollar Treasury bonds stood at MVR 13.09 billion, rufiyaa Islamic instruments at MVR 5.97 billion, dollar Treasury bills at MVR 3.86 billion and external bonds at MVR 1.54 billion. The ministry updates this table every two weeks.

The approved 2026 budget plans for a full-year deficit of MVR 8.84 billion. The ministry published the week 43 report on 2 November and announced it on 4 November. Maldives Today reported on the previous week's figures, including the rise in tax revenue to 22 October, on 2 November.