The Ministry of Finance has stated that the past year, 2025, was the only year within the last five years in which state expenditures were managed entirely within the approved state budget without requiring an additional supplementary budget.

In its budget performance statement released today, the Ministry of Finance noted that the state's total expenditure for 2025 was initially projected to be MVR 49.2 billion. However, actual total expenditure by the end of the year stood at MVR 44.2 billion, marking an MVR 5.0 billion reduction in spending compared to estimations.

The statement explained that the significant reduction in state expenditure was achieved due to robust measures implemented in budget execution, changes brought to the management of state investment projects, and steps taken to control recurrent and capital expenditures.

It also highlighted that expenditures last year were managed under a strict framework aimed at minimizing waste and reducing costs.

The Ministry of Finance stated that, following the reduction in spending, the budget deficit was also significantly lower than initial forecasts. While the 2025 budget deficit was projected to be MVR 9.4 billion, it stood at MVR 4.4 billion by the end of the year, representing a decrease of MVR 5.0 billion from what was anticipated. The ministry emphasized that the deficit was successfully reduced to 3.6 percent of the Gross Domestic Product (GDP).

In addition to these factors, the ministry noted that since the state received a record MVR 39.9 billion in revenue and grants last year—making it the highest revenue collection to date—the fiscal year was successfully concluded strictly within the initially approved budget framework without needing any supplementary budget.