T-GST, Green Tax drive stronger state revenue, says fiscal report
Total revenue and grants reached MVR 33.2 billion, a 9.9 percent increase from MVR 30.3 billion in the same period last year.
The government has harmonised public sector wages and maintained revenue growth, according to the Weekly Fiscal Developments report issued by the Ministry of Finance and Development Planning up to 13 November 2025.
Total revenue and grants reached MVR 33.2 billion, a 9.9 percent increase from MVR 30.3 billion in the same period last year. Tax revenue rose 7.7 percent to MVR 24.8 billion. Tourism GST (T-GST) increased 13.7 percent to MVR 9.0 billion after changes introduced on 1 July this year. Green Tax revenue increased 108 percent to MVR 1.9 billion, while airport service charges and departure tax rose 60.2 percent to MVR 1.5 billion.
Non-tax revenue increased 22.1 percent to MVR 8.2 billion, with revenue from miscellaneous service fees rising 60.3 percent to MVR 3.7 billion. Airport development fees accounted for a significant portion of this increase, reaching MVR 1.6 billion, up 60.4 percent.
Total expenditure amounted to MVR 34.1 billion, a 13.5 percent reduction from MVR 39.4 billion in the previous year. Government operating expenditure decreased 10.7 percent to MVR 2.0 billion. Spending on advertising and subsidies fell 4 percent compared to last year. Although subsidy spending exceeded budget allocations, it remained 11.1 percent lower than last year, attributed mainly to a drop in global oil prices.
Financing and interest expenses fell 5.7 percent to MVR 4.0 billion. Subsidy-related spending recorded the largest increase during the week under review.
Capital expenditure totalled MVR 4.9 billion, a 53.9 percent decline from MVR 10.5 billion in the previous year. The report attributed the decrease to tighter project cost controls and the use of contractor financing. Public Sector Investment Programme (PSIP) expenditure reached MVR 6.9 billion, falling 25.6 percent from MVR 9.3 billion last year. Transport accounted for MVR 4.3 billion of the PSIP spending, including MVR 3.2 billion in airport investments, MVR 846.7 million in bridge construction and MVR 309.4 million in port construction.
The overall budget deficit stood at MVR 807.3 million as of 13 November 2025, a 91.1 percent reduction from the MVR 9.1 billion deficit recorded in the same period last year. The government attributed the improvement to revenue measures, economic performance and expenditure controls. Despite the overall deficit, the primary balance remained in surplus at MVR 3.2 billion.
On 6 November, the government signed 206 agreements with 53 private companies to implement contractor-financed resource development projects in nine sectors. The arrangements allow private sector capital and expertise to be used for priority projects without drawing on the state budget, thereby freeing resources for essential services.
The salary harmonisation policy, which took effect in November 2025, establishes a more consistent public service pay structure. The policy is implemented alongside cost-control measures and capital project adjustments. The government said that while revenue growth continues, capital expenditure is increasingly focused on key resource development projects.
