Maldives records MVR 118 million surplus as revenue reaches MVR 16.8 billion

The state recorded MVR 16.8 billion in revenue and grants as of May 14, according to the latest Weekly Fiscal Developments report published by the Ministry of Finance and Public Enterprises.

The figure represents an increase of MVR 1.8 billion, or 12.2 percent, compared to the MVR 14.9 billion recorded during the same period in 2025.

According to the report, tax revenue remained the main contributor to state income, reaching MVR 13.3 billion by May 14. This marks an increase of MVR 1.9 billion, or 17.1 percent, compared to the corresponding period last year.

The report identified corporate income tax as one of the main contributors to the increase in revenue.

Corporate Income Tax collections reached MVR 2.7 billion during the period, up by MVR 637.6 million, or 31.3 percent, from the MVR 2.0 billion collected during the same period in 2025.

Total state expenditure, including recurrent and capital spending, stood at MVR 16.7 billion, representing an increase of MVR 3.1 billion, or 22.4 percent, compared to the MVR 13.6 billion spent during the same period last year.

Recurrent expenditure rose by MVR 2.6 billion, or 21.6 percent, to MVR 14.7 billion, while capital expenditure increased by MVR 441.9 million, or 28.8 percent, to MVR 2.0 billion.

As total revenue and grants exceeded expenditure, the state budget recorded a surplus of MVR 118.2 million during the period.

Debt servicing and interest costs remained at MVR 2.1 billion.

Subsidy expenditure increased to MVR 2.3 billion, up by MVR 993.1 million, or 77.8 percent, from MVR 1.3 billion recorded during the same period in 2025.

According to the report, the increase was largely linked to rising fuel prices associated with the conflict in the Middle East, which increased the cost of fuel subsidies used for electricity generation.

The report noted that the subsidy programme helped maintain stable prices for essential goods and services despite changes in international market prices.

Expenditure on salaries and allowances also increased during the period.

Spending on salaries and benefits reached MVR 5.3 billion, an increase of MVR 477.4 million, or 9.9 percent, compared to MVR 4.8 billion recorded last year.

The increase was linked to the government’s ongoing pay harmonisation programme.

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The report stated that higher tax revenue, particularly from businesses, strengthened the state’s fiscal position during the period.

Despite increases in subsidy expenditure and salary-related spending, the government maintained a budget surplus as of May 14.