Maldives Exceeds Annual Grant Estimates with USD 32.4 Million Received by August

The Maldives has secured USD 32.4 million in grants during the first eight months of 2024, significantly surpassing the annual state budget projection of USD 24.2 million. The latest Weekly Fiscal Developments report from the Ministry of Finance and Public Enterprises highlights a sharp increase in international support compared to the same period last year, when the state received USD 16.4 million. Overall state revenue and grants reached USD 1.86 billion by the end of August, marking a 6.2 percent increase over the previous year. This growth, representing an additional USD 109.6 million in revenue, was primarily driven by a robust 8.5 percent surge in tax collections, which rose from USD 1.34 billion to USD 1.45 billion. Despite the increase in revenue and grants, state spending has also climbed. Total expenditure reached USD 2 billion, a 17 percent increase from the USD 1.71 billion spent during the same window last year. This spending growth was split between recurrent expenditure, which rose by 18.6 percent to USD 1.75 billion, and capital expenditure, which grew by 6.9 percent to USD 251.6 million. These financial shifts have impacted the nation's primary surplus—the balance of revenue and grants over expenditure, excluding debt and interest. The state recorded a primary surplus of USD 82.4 million, a 68.6 percent decline from the USD 262 million recorded in the previous year. When debt and interest obligations are included, the overall budget balance shifted into a deficit of USD 138.1 million. This stands in contrast to the previous year's performance, where the state maintained a surplus of USD 42.7 million during the corresponding period.