State Revenue Tops MVR 24bn, Up 10.9%

State revenue and grants reached MVR 24.1 billion as of 23 July 2026, a 10.9 percent increase compared to the same period last year, driven mainly by higher Goods and Services Tax (GST) collections, according to the latest Weekly Fiscal Developments report by the Ministry of Finance and Public Enterprises.

Total revenue and grants increased by MVR 2.4 billion from MVR 21.7 billion recorded during the corresponding period in 2025. Tax revenue alone rose 12.1 percent to MVR 18.4 billion.

GST remained the government's largest source of tax revenue, generating MVR 10.0 billion, up 9.7 percent from MVR 9.1 billion a year earlier. General GST (GGST) collections rose 13.6 percent to MVR 3.1 billion, while Tourism GST (TGST) increased 8.0 percent to MVR 6.9 billion. The ministry said TGST recorded the strongest revenue growth during the past week.

By 23 July, the government had collected 59.7 percent of its projected MVR 40.4 billion in revenue and grants for 2026.

Government expenditure reached MVR 25.5 billion during the same period, up 19.7 percent from MVR 21.3 billion last year. The increase was driven by higher spending on civil service salaries, healthcare, and social protection programmes.

Salary, wage and pension spending rose 9.5 percent to MVR 8.5 billion following civil service pay adjustments introduced in November 2025. Aasandha expenditure increased 14.8 percent to MVR 1.2 billion.

Subsidy spending saw the largest increase, rising 79 percent to MVR 3.2 billion. The ministry attributed the jump to higher global oil and commodity prices amid ongoing conflicts in the Middle East.

As of 23 July, the government recorded a primary surplus of MVR 1.5 billion, while the overall fiscal balance remained in deficit at MVR 1.4 billion.