Govt records MVR 2.1 billion surplus as spending declines

The government recorded an increase in revenue and a budget surplus for the period ending March 19, 2026, according to the Weekly Fiscal Developments report issued by the Ministry of Finance and Planning.

Total revenue and grants reached MVR 9.4 billion, compared to MVR 9.0 billion in the same period last year, representing a 4.4 per cent increase.

Tax revenue rose by 12.8 per cent to MVR 7.7 billion, accounting for approximately 82 per cent of total revenue.

Goods and Services Tax (GST) remained the largest source of revenue, generating MVR 4.0 billion. This included MVR 2.9 billion from Tourism Goods and Services Tax (TGST) and MVR 1.1 billion from General GST.

Revenue from business and property taxes increased by 24.8 per cent to MVR 2.2 billion. Corporate Income Tax contributed MVR 1.2 billion, while Non-Resident Withholding Tax generated MVR 426.2 million.

Green Tax collections stood at MVR 497.3 million, and Airport Service Charge and Departure Tax generated MVR 427.7 million.

Total expenditure as of March 19 was MVR 7.3 billion, a decrease of 10.3 per cent compared to the same period last year. Recurrent expenditure declined by 10.5 per cent, while capital expenditure fell by 7.8 per cent.

Spending on salaries and benefits increased by 3.0 per cent to MVR 2.7 billion following the implementation of the pay equalisation policy in November 2025.

The overall budget recorded a surplus of MVR 2.1 billion, reflecting a 140.7 per cent increase compared to the corresponding period last year.

Allocations to the Sovereign Development Fund increased by 8.6 per cent, while block grants to local councils rose by 18.0 per cent.

The ministry stated that the highest increase in revenue during the reported week was from General GST, while expenditure growth was highest in other forms of assistance and grants.

The ministry noted that the figures are subject to revision following the finalisation and audit of financial accounts.