State revenue and grants rose 10.4 percent to MVR 27.1 billion as of August 13, driven mainly by higher TGST collections. Government expenditure increased 19.3 percent to MVR 28.1 billion, leaving the state with a MVR 950.3 million budget deficit despite a MVR 2.4 billion primary surplus.
Adhadhu
According to the latest Weekly Fiscal Developments Report released by the Ministry of Finance and Public Enterprises, the state received MVR 27.1 billion in revenue and grants as of August 13. This is an increase of MVR 2.6 billion or 10.4 percent compared to MVR 24.6 billion in the same period. According to the publication, the main reason for the increase in revenue last week was the Tourism Goods and Services Tax (TGST).
TGST collection stood at MVR 7.2 billion, an increase of MVR 447.1 million or 6.6 percent as against MVR 6.8 billion as on August 13. Gross Goods and Services Tax (GST) revenue rose from MVR 9.9 billion to MVR 10.7 billion or 7.9 percent, while General Goods and Services Tax (GGST) revenue rose from MVR 3.1 billion to MVR 3.5 billion or 10.8 percent.
The publication further stated that tax revenue accounted for the bulk of the state's revenue, standing at MVR 21.1 billion or 11.9 percent as against MVR 18.8 billion in the same period last year. Business profit tax increased from MVR 4.5 billion to MVR 5.4 billion or 20.6 percent, while import duty rose from MVR 1.8 billion to MVR 2.1 billion or 16.4 percent. Airport service charges and departure taxes were up MVR 1.2 billion or 14.3 percent, while green taxes were up MVR 1.4 billion or 6.3 percent.
Non-tax revenue stood at MVR 5.6 billion, up 1.9 percent from MVR 5.5 billion last year. Hard property revenue increased from MVR 1.3 billion to MVR 1.7 billion, or 32.1 percent, including MVR 1.2 billion (10.7 percent) from resort rentals. Airport development fees increased by MVR 1.2 billion, or 15.4 percent, while grants rose from MVR 242.1 million to MVR 460.4 million, or 90.1 percent.
Total government expenditure stood at MVR 28.1 billion. This is an increase of MVR 4.5 billion or 19.3 percent compared to MVR 23.5 billion spent during the same period. Recurrent expenditure increased from MVR 20.3 billion to MVR 24.5 billion, or 20.9 percent, while capital expenditure on development projects rose from MVR 3.3 billion to MVR 3.6 billion, or 9.1 percent.
The largest increase in expenditure in the past week was in the form of subsidies. The total expenditure on subsidies was MVR 3.5 billion, an increase of MVR 1.5 billion or 78.4 percent from MVR 2.0 billion last year. Total expenditure on aid and subsidies increased from MVR 5.6 billion to MVR 8.1 billion, or 44.1 percent. Expenditure on Aasandha increased by MVR 1.4 billion or 14.7 percent, while expenditure on other assistance and benefits increased by MVR 1.6 billion or 58.4 percent. These include the Judiciary Sectoral Grant to ensure the financial independence of the judiciary
Salaries, allowances and pensions stood at MVR 9.4 billion, an increase of 11.2 per cent over MVR 8.4 billion last year. Administrative and operating expenses rose from MVR 11.8 billion to MVR 15.0 billion, or 27.4 percent, while debt service and interest expense increased 9.1 percent from MVR 3.1 billion to MVR 3.3 billion.
On the capital expenditure front, expenditure on land and buildings increased by 46.2 percent from MVR 800.0 million to MVR 1.2 billion, while expenditure on acquisition of hard assets increased by 19.4 percent from MVR 378.1 million to MVR 451.5 million. The Public Sector Investment Program (PSIP) cost MVR 3.6 billion. This is a decrease of 30.0 percent.
As of 13 August 2026, the primary surplus of the state budget stood at MVR 2.4 billion. The total balance of the state budget is currently in deficit of MVR 950.3 million.
