Tax revenue growth lifts state revenue to MVR 22.4 billion
Total revenue and grants increased by MVR 2.1 billion, or 10.4%, compared with MVR 20.3 billion recorded during the same period in 2025.
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The Maldives recorded MVR 22.4 billion in revenue and grants by 2 July 2026, supported by higher tax collections, according to the Ministry of Finance and Public Enterprises' latest Weekly Fiscal Developments report.
Total revenue and grants increased by MVR 2.1 billion, or 10.4%, compared with MVR 20.3 billion recorded during the same period in 2025.
Tax revenue accounted for the largest share of government income, rising from MVR 15.3 billion to MVR 17.3 billion, an increase of MVR 2.0 billion, or 13.0%.
Corporate Income Tax and Goods and Services Tax (GST) were the main contributors to the increase.
Corporate Income Tax collections reached MVR 1.7 billion, up MVR 97.7 million, or 6.2%, from the corresponding period last year. The increase reflected higher commercial activity and the timing of tax filing deadlines.
GST collections totalled MVR 9.6 billion, an increase of MVR 835.4 million, or 9.6%, compared with the same period in 2025. The total included MVR 2.9 billion in General GST and MVR 6.6 billion in Tourism Goods and Services Tax (TGST).
Total government expenditure stood at MVR 23.4 billion, up MVR 4.2 billion, or 21.7%, from MVR 19.2 billion recorded during the same period last year.
The increase in expenditure was driven mainly by higher spending on salaries and allowances for civil servants. Subsidy expenditure also rose as the government continued to absorb increases in global fuel and commodity prices. Subsidy spending increased by MVR 1.4 billion during the period.
Expenditure on wages and salaries reached MVR 3.7 billion, representing a 13.9% increase compared with the previous year. Combined expenditure on salaries and pensions totalled MVR 8.0 billion.
Recurrent expenditure amounted to MVR 20.3 billion, while capital expenditure reached MVR 3.0 billion, reflecting continued spending on infrastructure projects.
Despite higher expenditure, the government recorded a primary surplus of MVR 1.7 billion, indicating that revenue exceeded expenditure before interest payments. After accounting for all expenditure, including debt servicing, the overall fiscal balance recorded a deficit of MVR 975.9 million.
