Gov’t Revenue Lower than Expected, MP Azaan Calls to Implement Budget Reforms

Parliamentarian for Central Hithadhoo constituency and member of People’s National Congress (PNC) Ahmed Azaan Maarzooq calls for implementing budget reform programs, stating the state had generated lower income than expected. 

Azaan, who had previously served on the parliamentary Public Accounts Committee, said in a post on X that as per the government cashflow plan, they had predicted that the Maldives would have generated a revenue of MVR 9.1 billion by February. However, the actual revenue generated by that period was MVR 5.5 billion. 

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This is a decrease of 39.5 percent in projected revenue, he said. 

According to the 2025 budget cash flow plan, the government anticipated MVR 9.1B in revenue by February. However, actual revenue stood at MVR 5.5B, reflecting a shortfall of MVR 3.6B (39.5% below projections).

Grants: Expected MVR 408M, received MVR 40M (-90%)
Foreign loans:…— Ahmed Azaan (@axanner) March 12, 2025

He said that the Maldives had also expected to receive MVR 408 million in grants during this period, but it received only MVR 40 million, a 90 percent decrease. The country received even less in forecasted foreign loans, with an expected amount of MVR 665 million, but it received only MVR 300,000. That is over a 99.9 percent decrease in the expected loans the country would receive by February.

“As proposed in Budget 2025 and recommended by the IMF, reform programs need to be implemented in a timely manner,” Azaan said on X.

Some of the reforms outlined in last year’s 2025 budget include the Aasandha reforms, which were projected to be implemented by next month. The budget also approved reforming State-Owned Enterprises to address economic challenges.

Last month, the International Monetary Fund (IMF) concluded its 2025 Article IV Mission to the Maldives and called for broad fiscal reforms. The IMF said that despite the Maldives’ projected GDP growth of five percent this year, the existing fiscal and external vulnerabilities are concerning. 

Some of the recommendations made by the IMF include curbing excessive government spending while protecting social and welfare programs, subsidy reforms and introducing direct income transfers to vulnerable households.