The Maldives’ Ministry of Finance has announced that the country’s total revenue and grants reached MVR 39.9 billion in 2025, marking the highest annual total ever recorded by the nation.

The figures were released on Tuesday through the ministry’s State Budget Outcome Statement for 2025, which provides an overview of the government’s financial performance for the year.

According to the report, revenue and grants increased by MVR 4.8 billion compared to MVR 35.1 billion collected in 2024, representing a growth of 13.6%. The ministry noted that actual collections also surpassed the initial budget estimates. When the budget was submitted to Parliament on October 31, 2024, the projected revenue and grants were MVR 39.8 billion, but actual receipts exceeded this by MVR 74.4 million.

The rise in revenue was mainly driven by growth in the tourism sector and higher non-tax income. Although some revenue categories fell short of projections, stronger performance in other areas compensated for these shortfalls.

Tourism sector results closely aligned with budget expectations. The government had forecasted 2.248 million tourist arrivals for the year, while actual arrivals reached 2.246 million—just 1,604 fewer than projected—representing a 9.8% increase compared to 2024. Tourist bed nights also surpassed estimates, totaling 14.21 million against a forecast of 14.15 million.

This boost in tourism contributed to increased collections from the Tourism Goods and Services Tax (TGST) and Green Tax, while Goods and Services Tax (GST) revenue remained within budget.

Non-tax revenues also played a significant role, with the government earning:

- MVR 2.1 billion from resort rent

- MVR 1.2 billion from resort lease extension fees

- MVR 793.4 million from work permit fees

These higher revenues helped reduce the overall budget deficit. While the original budget projected a deficit of MVR 9.4 billion, the final deficit was MVR 4.4 billion—MVR 5 billion lower than initially forecast—and this was the lowest deficit recorded in the last six years.

As a percentage of GDP, the deficit dropped to 3.6% from 9.9% in 2024 and 10.5% in 2023. Notably, the government completed the fiscal year without needing a supplementary budget, marking the first time in five years that expenditures stayed within the limits of the original budget.

Total government spending for 2025 reached MVR 44.2 billion, below the budgeted amount of MVR 49.2 billion. By the end of the year, total public debt stood at MVR 154.9 billion, which is approximately 129.8% of GDP.

Debt servicing costs for the year amounted to MVR 10.1 billion, including MVR 5.3 billion in principal repayments and MVR 4.8 billion in interest payments. The government also settled a US$500 million sovereign Sukuk and a separate US$50 million debt owed to India.

The Ministry of Finance stated that stronger revenue performance, careful expenditure management, and debt repayments contributed to an overall improvement in the country’s fiscal health in 2025.