The report shows that the state's financial situation has improved significantly. The overall balance of the state budget stood at a surplus of MVR 2.1 billion.
Ministry of Finance
The Ministry of Finance and Planning has compiled its Weekly Fiscal Developments Report for 19 March 2026.
Total revenue and grants received by the state during the period amounted to MVR 9.4 billion, reflecting a 4.4 percent increase compared to MVR 9.0 billion in the same period last year. This growth was primarily driven by higher tax revenue, which rose by 12.8 percent to MVR 7.7 billion, accounting for approximately 82 percent of total state revenue.
According to the report, Goods and Services Tax (GST) contributed the largest share of revenue. GST collections reached MVR 4.0 billion, marking a 10.8 percent increase year-on-year. This includes MVR 2.9 billion from Tourism GST (TGST) and MVR 1.1 billion from General GST. Revenue from business and property taxes also saw a significant rise of 24.8 percent, reaching MVR 2.2 billion.
Other tax revenues included corporate income tax amounting to MVR 1.2 billion and non-resident withholding tax totalling MVR 426.2 million. Green tax collections stood at MVR 497.3 million, while airport service charges and departure tax generated MVR 427.7 million.
As of 19 March 2026, total state expenditure stood at MVR 7.3 billion, representing a 10.3 percent decrease compared to the same period last year. Operating (recurrent) expenses declined by 10.5 percent, while capital expenditure fell by 7.8 percent. However, following the policy to equalise public sector salaries introduced in November 2025, spending on salaries and allowances increased by 3.0 percent to MVR 2.7 billion.
The report indicates a notable improvement in the state’s fiscal position. The overall budget balance recorded a surplus of MVR 2.1 billion, a substantial increase of 140.7 percent compared to the same period last year. Additionally, deposits into the Sovereign Development Fund (SDF) rose by 8.6 percent, while block grants to councils increased by 18.0 percent.
The Ministry noted that the most significant increase in revenue during the reported week came from General GST, while the largest increase in expenditure was observed in other aid and grants. It also cautioned that these figures remain provisional and are subject to change as financial statements are finalised.
