Tax growth and Sukuk dettlement drive fiscal position

The Ministry of Finance and Development Planning Maldives has reported an increase in revenue and a budget surplus in its Weekly Fiscal Developments report for the period ending 2 April 2026.

According to the report, total state revenue and grants reached MVR 12.4 billion, reflecting an increase of 11.6% compared to MVR 11.1 billion recorded during the same period last year. The overall fiscal balance recorded a surplus of MVR 2.3 billion, compared to a surplus of MVR 1.8 billion in the corresponding period of 2025.

The report also highlighted the settlement of the USD 500 million Sukuk issued in 2021, along with a coupon payment of USD 24.68 million. The repayment was made using the Sovereign Development Fund (SDF) and foreign currency reserves.

The ministry stated that policy measures introduced since 2024 contributed to increased foreign currency inflows and an improvement in the external position. These measures included revenue-related reforms and changes to monetary policy, including the implementation of the Foreign Exchange Act and related regulations requiring the conversion of foreign currency earnings.

The report noted that these measures contributed to an increase in official reserves by the end of March 2026 and supported the accumulation of foreign currency in the SDF.

Loan repayments by the state reached MVR 8.5 billion by the end of the period, compared to MVR 2.4 billion in the same period last year, representing an increase of 254.5%. Expenditure on interest declined from MVR 1.51 billion to MVR 1.08 billion, a decrease of 28.5%.

Tax revenue remained the main source of income, with MVR 10.0 billion collected by the end of the period, reflecting an increase of 20.2% compared to MVR 8.3 billion in the same period of 2025.

Of the total tax revenue, MVR 5.6 billion was collected as Goods and Services Tax (GST), an increase of 17.8%, while MVR 4.1 billion was recorded as Tourism Goods and Services Tax (TGST), marking a 19.0% increase from MVR 3.4 billion in the corresponding period last year.

The report stated that the highest increase in revenue during the past week was recorded in TGST collections.