TGST growth lifts revenue as fiscal deficit narrows
The report states that total revenue and grants stood at MVR 36.0 billion as of last week, representing an increase of 10.5 per cent.
Revenue from tourism-related taxes recorded an increase, contributing to higher overall government income, according to the Ministry of Finance and Planning’s Fiscal Developments Report for the period up to 11 December 2025.
The report states that total revenue and grants stood at MVR 36.0 billion as of last week, representing an increase of 10.5 per cent compared to MVR 32.6 billion during the same period last year.
Tax revenue showed growth during the period, with the largest increase recorded in tourism goods and services tax (TGST). TGST collections reached MVR 9.9 billion, up 14.1 per cent from MVR 8.7 billion in the corresponding period last year. Total tax revenue amounted to MVR 26.9 billion, an increase of 9.2 per cent from MVR 24.7 billion a year earlier.
Total government expenditure stood at MVR 37.9 billion as of last week. This reflects a decrease of 12.7 per cent compared to MVR 43.4 billion in the same period last year. The report notes that subsidies accounted for the largest increase in expenditure during the past week. Spending on subsidies reached MVR 3.4 billion, a decrease of 6.5 per cent compared to MVR 3.6 billion recorded during the same period last year.
Expenditure under the Public Sector Investment Programme (PSIP) reached MVR 7.3 billion by last week. Health and transport sectors recorded notable spending during the period. Expenditure on health sector development totalled MVR 443.0 million, an increase of 219.0 per cent from MVR 138.9 million spent during the same period last year.
Transport remained the largest sector under PSIP, with total expenditure of MVR 4.4 billion. Airport-related projects accounted for MVR 3.2 billion of this amount, representing an increase of 4.5 per cent compared to MVR 3.0 billion in the corresponding period last year.
The overall fiscal balance recorded a deficit of MVR 1.9 billion as of last week. This represents a reduction of 82.5 per cent compared to the deficit of MVR 10.8 billion recorded during the same period last year.
