Revenue rises 10.9% to MVR 24.1 billion as GST collections increase
The report shows total revenue and grants increased by MVR 2.4 billion from MVR 21.7 billion recorded during the corresponding period of 2025.
State revenue and grants reached MVR 24.1 billion as of 23 July 2026, an increase of 10.9% compared with the same period last year, according to the Ministry of Finance and Public Enterprises' latest Weekly Fiscal Developments Report.
The report shows total revenue and grants increased by MVR 2.4 billion from MVR 21.7 billion recorded during the corresponding period of 2025. The growth was driven mainly by higher tax revenue, supported by continued increases in Goods and Services Tax (GST) collections.
Tax revenue rose by 12.1%, or MVR 2.0 billion, reaching MVR 18.4 billion compared with MVR 16.4 billion during the same period last year.
GST remained the largest source of tax revenue, generating MVR 10.0 billion. This represents an increase of 9.7%, or MVR 878.5 million, from the MVR 9.1 billion collected by the same point in 2025.
General Goods and Services Tax (GGST) revenue increased by 13.6% to MVR 3.1 billion, up from MVR 2.7 billion, representing an increase of MVR 371.3 million.
Tourism Goods and Services Tax (TGST) collections reached MVR 6.9 billion, an increase of 8.0%, or MVR 507.2 million, compared with MVR 6.4 billion collected during the corresponding period last year.
According to the report, the government had collected 59.7% of the MVR 40.4 billion in total revenue and grants projected for 2026 by 23 July.
Total expenditure on recurrent and capital spending reached MVR 25.5 billion, an increase of 19.7%, or MVR 4.2 billion, from MVR 21.3 billion recorded during the same period in 2025.
The increase in expenditure reflects higher allocations for civil service salaries and allowances, public healthcare services and social protection programmes.
Spending on salaries, wages and pensions rose by 9.5% to MVR 8.5 billion, an increase of MVR 739.7 million compared with MVR 7.8 billion in the corresponding period last year. The ministry attributed the increase to the civil service pay framework introduced in November 2025.
Expenditure under the Aasandha national health insurance scheme reached MVR 1.2 billion, up 14.8%, or MVR 161.5 million, from MVR 1.1 billion during the same period in 2025.
Government subsidy expenditure rose to MVR 3.2 billion, an increase of 79.0%, or MVR 1.4 billion, compared with MVR 1.8 billion recorded by 23 July last year. According to the ministry, the increase was driven mainly by higher global fuel and commodity prices linked to the conflict in the Middle East.
As of 23 July, the government's fiscal position recorded a primary surplus of MVR 1.5 billion, while the overall fiscal balance showed a deficit of MVR 1.4 billion.
