Government Revenue Rises 11.6 Percent as Fiscal Position Shows Surplus

Government revenue and grants increased by 11.6 percent this year, according to the latest Weekly Fiscal Developments Report issued by the Ministry of Finance.

As of 16 April, the state collected MVR 13.6 billion (USD 882.5 million) in revenue and grants. This compares with MVR 12.2 billion (USD 791.6 million) during the same period last year.
Total expenditure reached MVR 12.0 billion (USD 778.1 million), up from MVR 10.3 billion (USD 668.0 million) last year, an increase of 16.9 percent.

The figures place the state budget in a surplus of MVR 1.6 billion (USD 103.8 million).

One of the key updates in this week’s report is the reorganisation of ministries and agencies following changes to the cabinet and institutional structure. The adjustments, made under a directive from the President’s Office on 15 April, have now been reflected in the fiscal tables to align reporting with the current government structure.

The ministry also revised the way expenditures are presented for the Judicial Sectoral Grant allocated to the Department of Judicial Administration. From 9 April onwards, DJA expenditures have been removed from the budget tables. The ministry said the change is intended to present expenditure statistics more clearly.

On the revenue side, tax revenue reached MVR 10.9 billion (USD 707.5 million), an increase of 19.7 percent compared with MVR 9.1 billion (USD 590.8 million) during the same period last year.

Goods and Services Tax collection totalled MVR 5.9 billion (USD 382.7 million).
Tourism GST recorded the strongest growth, reaching MVR 4.3 billion (USD 279.0 million), up 17.5 percent from last year.

Other tourism‑related revenues also increased:
• Green Tax: MVR 768.0 million (USD 49.8 million)
• Departure Tax: MVR 649.5 million (USD 42.1 million)

Recurrent expenditure reached MVR 10.6 billion (USD 687.4 million), up 14.6 percent from last year.
Spending on capital items increased 39.9 percent to MVR 1.3 billion (USD 84.3 million).

Of the recurrent spending:
• Salaries and pensions: MVR 4.0 billion (USD 259.4 million)
• Administrative and operational costs: MVR 6.7 billion (USD 434.7 million)

Subsidies saw the largest increase. As of 16 April, the state spent MVR 1.4 billion (USD 90.8 million) on subsidies, a rise of 36.2 percent compared with the same period last year.

The ministry said the fiscal position remained in surplus at the end of the period due to higher revenue collection.