Maldives Government Blows Past Investment Budget, Spends Over MVR 1 Billion

The Maldives government has spent over MVR 1 billion on investments so far this year, significantly surpassing the amount allocated in the national budget and marking a notable rise compared to last year.

According to the latest figures from the Ministry of Finance, investment spending increased by more than MVR 200 million compared to the same period in 2024—an approximate 20 percent jump. The majority of these funds were channeled to state-owned enterprises as part of ongoing development and economic initiatives.

Budget Overrun Raises Concerns

This year’s state budget had earmarked just MVR 378 million for investments. However, actual spending has already surpassed that by a wide margin, reaching nearly triple the original figure. The overspending has triggered concern among fiscal observers and policymakers, as the government had earlier pledged to tighten expenditures.

A plan had been outlined to cap government spending at MVR 2.5 billion, but the proposed reforms and cuts have yet to materialize. With current figures outpacing the budgeted limits, there is growing speculation that a supplementary budget may soon be submitted to the Parliament.

Broader Fiscal Picture

As of now, the government has spent a total of MVR 23.5 billion for the year. Recurrent expenses account for MVR 16.6 billion, while MVR 2.1 billion has gone into capital projects. Despite the spike in investment spending, overall government expenditure is actually MVR 2.3 billion lower than during the same period last year.

Revenue collection for the year stands at MVR 20 billion, leaving a considerable gap between income and total expenses. The full budget for 2025 was set at MVR 56.6 billion.

What Lies Ahead?

With the government’s initial cost-saving plans still on paper and investment spending already far above projections, questions are being raised about how future funding needs will be met without pushing the budget further into deficit.

Discussions are already underway in policy circles regarding whether the current pace of spending is sustainable and what adjustments may be necessary to keep finances on track for the rest of the year.