News Desk
MALÉ, Maldives — The Maldives is preparing to enter 2026 with a budget deficit of MVR 8.8 billion, despite a sharp rise in state revenue. On Wednesday, the Budget Review Committee of Parliament approved the Finance Ministry’s proposed MVR 64.2 billion budget without amendments, forwarding it to the Majlis floor for debate.
The budget outlines MVR 49.2 billion in total expenditure and MVR 40.4 billion in revenue, leaving a fiscal gap equivalent to USD 571 million at the current exchange rate of 15.42 MVR per dollar. Recurrent expenditure alone is projected at MVR 39.9 billion, nearly matching total revenue.
The Maldives Inland Revenue Authority (MIRA), which collects 95 percent of state revenue, reported a 38 percent increase in collections this year. As of October, revenue reached USD 1.2 billion (approximately MVR 18.5 billion), up from USD 871 million in the same period last year.
Tax revenue stood at USD 925 million, a USD 246 million increase over last year’s USD 679 million. Non-tax revenue rose to USD 281 million, compared to USD 192 million in 2024.
Key sources of dollar revenue include:
- TGST (Tourism Goods and Services Tax): USD 578 million
- Income Tax: USD 126 million
- Green Tax: USD 119 million
- Airport Development Fee: USD 101 million
- Departure Tax: USD 100 million
- Tourism Land Rent: USD 97 million
- Additional Tourism Land Rent: USD 63 million
- Non-resident Withholding Tax: USD 72 million
The Finance Ministry projects GDP growth at 5.3 percent next year. Tourism, the country’s economic engine, is expected to generate USD 5 billion in 2025.
Despite the revenue surge, the budget has drawn criticism from some opposition lawmakers over subsidy cuts. Proposals to increase allocations for fishermen and farmers were rejected during committee review. The Finance Ministry has maintained that no additional budget can be granted to agencies due to rising expenditures.
The budget now awaits full parliamentary debate, where fiscal discipline will be weighed against sectoral demands and social spending priorities.
