Maldives records MVR 1.9 billion budget surplus in early 2026

The government recorded a fiscal surplus of MVR 1.9 billion between 1 January and 26 February 2026, while foreign currency inflows reached USD 222.8 million, according to the latest fiscal report released by the Ministry of Finance and Planning.

Figures contained in the financial report covering the eighth week of 2026 show that total revenue and grants amounted to MVR 7.8 billion during the period, while total expenditure stood at MVR 5.9 billion. The difference resulted in a budget surplus of MVR 1.9 billion.

Revenue increased compared with the same period last year. The report shows revenue and grants rose by 29.3 per cent from MVR 6.0 billion recorded in the corresponding period of 2025. Of the total revenue collected this year, 83 per cent was generated from taxes.

Tax revenue reached MVR 6.5 billion as of 26 February, marking an increase of 30.6 per cent compared with MVR 5.0 billion during the same period last year.

The report states that the largest increase was recorded in tourism goods and services tax (TGST). TGST collections reached MVR 2.3 billion, representing a rise of 39.4 per cent compared with the previous year.

Goods and services tax (GST), business tax and property tax remained the main sources of government revenue. Total GST collection stood at MVR 3.2 billion, an increase of 32.1 per cent compared with the same period last year. Revenue from business and property taxes amounted to MVR 2.2 billion.

Government expenditure during the period remained close to the level recorded last year. However, spending on salaries and allowances for employees increased by 9.6 per cent.

Expenditure on salaries, wages and pensions reached MVR 2.64 billion, which the report attributes to the implementation of the government’s pay harmonisation policy.

The fiscal surplus increased to MVR 1.9 billion this year compared with MVR 98.2 million recorded during the same period last year.

Deposits to the Sovereign Development Fund also increased. According to the report, MVR 287.1 million was transferred to the fund, representing an increase of 2.5 per cent.

The Finance Ministry noted that financial reporting at the beginning of each fiscal year may face delays due to administrative and accounting adjustments.

In particular, the publication of the weekly fiscal report was delayed this year due to changes introduced to the state accounting framework. These changes include the introduction of a sectoral grant system for the judiciary and the establishment of a separate ledger account for the Zakat Fund.

The ministry said the restructuring of the state accounting system and reconciliation of financial accounts also contributed to the delay in releasing the report.