The latest fiscal development report from the Ministry of Finance reveals a decline of over MVR 2 billion in Public Sector Investment Program (PSIP) spending compared to the previous year.
The PSIP spending has dropped by 60% raising concerns over the lack of developmental projects in the Maldives.
Despite the budget allocation of MVR 12.38 billion for PSIP projects in 2025, the latest fiscal development report shows that spending has reached only MVR 1.45 billion as of May 29, 2025 – down from MVR 3.63 billion during the same period last year.
The largest share of PSIP spending so far in 2025 has gone toward transport infrastructure, including airport and harbor development, totaling MVR 811.1 million – down from MVR 1.07 billion during the same period last year.
The current government has faced ongoing criticism over stalled developmental projects, attributing delays in 2024 to budget constraints imposed by the previous parliament. With a new budget passed by the current People’s National Congress (PNC)-led legislature, the government has pledged to restart projects this year.
However, government statistics show a sharp decline in project spending, with capital expenditure dropping by 65% and PSIP spending down by 60%. Meanwhile, the current government also faces criticism for prioritizing state-owned enterprises (SOEs) in government contracts while sidelining private sector.
President Dr. Mohamed Muizzu, responding to criticism over stalled projects, announced at an event in M. Muli on May 20 that contracts for approximately 800 projects will be signed this year.
The latest fiscal report from the Ministry of Finance shows the overall government expenditure stood at MVR 15.32 billion as of May 29, marking a 13.6% decline from MVR 18.30 billion last year and resulting in budget surplus of MVR 1.2 billion. The drop is largely driven by a steep 65% drop in capital expenditure and a slight 2$ decline in recurrent spending.
Meanwhile, revenues and grants have increased by 7.6% to MVR 16.54 billion.