Maldives budget slips into deficit as loan repayments nearly triple

The Maldives government has recorded a fiscal deficit for the year to early June 2026, reversing a surplus posted at the same point last year, according to the latest Weekly Fiscal Developments report from the Ministry of Finance and Public Enterprises.

The report, dated 15 June 2026 and covering the period to 4 June, shows an overall balance of a deficit of MVR 110.6 million. At the same point in 2025, the government held a surplus of MVR 1,006.7 million.

Revenue rose over the year. Total revenue and grants reached MVR 19,089.3 million, up from MVR 17,337.5 million a year earlier. But spending rose faster. Total expenditure reached MVR 19,199.8 million, up from MVR 16,330.8 million.

The result is a budget where income grew by about 10 percent while spending grew by about 18 percent over the same period.

The report also shows a sharp rise in debt servicing. Loan repayments for the period reached MVR 8,705.0 million. That is nearly triple the MVR 3,130.8 million repaid at the same point in 2025.

The repayment figures are listed under memorandum items in the report and sit outside the main expenditure and balance calculations. They point to the scale of obligations the government is meeting as debts fall due.

Total government securities outstanding stood at MVR 97,152.5 million as of 1 June 2026, according to the report. This includes treasury bills, treasury bonds, Islamic instruments, and external bonds.

On the revenue side, tax collection carried most of the growth. Tax revenues reached MVR 14,842.9 million, up from MVR 13,209.6 million a year earlier. The Ministry said the largest revenue increase in the reporting week came from Tourism Goods and Services Tax, which reached MVR 6,018.5 million for the year to date.

Non-tax revenues fell slightly, to MVR 3,851.9 million from MVR 3,998.6 million.

Within spending, recurrent expenditure reached MVR 16,874.1 million, up from MVR 14,466.9 million. The Ministry said the largest spending increase in the reporting week came from Roads, Bridges and Airports.

The report notes that its figures are provisional. It states that revenue and expenditure data are likely to vary as reconciliation work continues. Expenditure figures reflect transactions that have been posted, meaning they are recorded but not necessarily settled in cash.

The Ministry did not provide, in the report, a breakdown of which loans drove the rise in repayments or a comparison of the interest cost of the debt over the two periods.