State Revenue Declines by 18 Percent in Early 2025, Finance Ministry Reports

The latest weekly fiscal updates from the Finance Ministry indicate that state revenue has declined by 18.8 percent in the first five weeks of 2025 compared to the same period last year.

As of 6 February, the state earned MVR 3.36 billion in revenue and grants, down from MVR 4.64 billion in 2024. Both tax and non-tax revenues have decreased during this period.

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Tax revenue fell by 14.9 percent, amounting to MVR 3.36 billion this year compared to MVR 3.95 billion last year. The most significant declines were recorded in import duties and business profit tax.

Revenue from import duties dropped by 64 percent, falling from MVR 385 million in 2024 to MVR 138 million this year. This decrease follows the implementation of the Maldives-China free trade agreement at the beginning of the year. Business profit tax revenue declined by 23 percent, reducing from MVR 1.7 billion last year to MVR 1.3 billion in 2025.

Non-tax revenue saw an even steeper decline, dropping by 42 percent. Reductions were noted in key revenue sources such as tourism land rent, quota fees, and the airport development fee.

State expenditure has also decreased, falling by 34 percent compared to the same period last year. Government spending stood at MVR 2.48 billion this year, down from MVR 3.26 billion in 2024.