News Desk
Strong collections from Corporate Income Tax and General Goods and Services Tax (GGST) pushed total state revenue and grants up by 9.3 percent, hitting MVR 26.5 billion as of August 6, according to the Finance Ministry’s latest Weekly Fiscal Development report.
The government brought in MVR 24.2 billion during the same period last year.
Tax revenue, which makes up the bulk of state earnings, climbed 10.1 percent to reach MVR 20.5 billion (up from MVR 18.7 billion). Corporate Income Tax alone pulled in MVR 2.7 billion, showing a slight 1.4 percent increase compared to last year’s MVR 2.6 billion.
GGST collections saw a notable 10.4 percent jump, bringing in MVR 3.4 billion—an extra MVR 323.7 million over last year’s MVR 3.1 billion. Overall Goods and Services Tax revenue reached MVR 10.5 billion, with Tourism GST (TGST) accounting for MVR 7.1 billion.
Import duties rose 13.2 percent to MVR 2.0 billion, business profit taxes soared 18.5 percent to MVR 5.3 billion, and departure taxes alongside airport service charges grew 14.9 percent to MVR 1.2 billion. Green Tax revenue also saw a minor bump to MVR 1.3 billion.
Non-tax revenues edged up 2.6 percent to MVR 5.5 billion, bolstered by a 33.1 percent jump in property-related income and higher state-owned enterprise dividends, which rose to MVR 483.1 million. Foreign grants more than doubled, hitting MVR 454.8 million compared to MVR 221.2 million in 2025.
Rising Outlays and Heavy Debt Servicing
While revenue improved, state spending also escalated across multiple fronts:
- Loan Repayments:
Foreign debt servicing consumed a massive chunk of the budget, surging 146 percent year-on-year to hit MVR 9.6 billion (up from MVR 3.9 billion). The government has budgeted MVR 12.9 billion for total loan repayments this year. - Recurrent Spending:
Recurrent expenses climbed 20.2 percent to MVR 23.9 billion. Salaries, allowances, and pensions totaled MVR 9.4 billion, while administrative and operational costs jumped 26.3 percent to MVR 14.4 billion. - Subsidies & Healthcare:
Subsidies and state aid leaped 43.3 percent to MVR 7.8 billion, driven by a massive 75.7 percent spike in direct subsidies (MVR 3.2 billion) and a 17.2 percent rise in Aasandha healthcare spending (MVR 1.3 billion). - Capital Expenditure:
Capital spending picked up by 7 percent to MVR 3.4 billion, fueled by spending on land and buildings (MVR 1.1 billion), harbor and bridge works (MVR 261.0 million), and general infrastructure (MVR 791.2 million).
Despite the higher revenues, the overall fiscal deficit stood at MVR 792.8 million as of August 6, though the primary balance recorded a MVR 2.4 billion surplus.
