In their statement, the Ministry noted that GST, business and property taxes are still the biggest revenue sources for the state.
Ministry of Finance
According to the Financial Report for the 8th week of 2026 released by the Ministry of Finance and Development Planning, the financial situation of the state has improved significantly from 01 January 2026 to 26 February.
According to the figures, the government received a total of MVR 7.8 billion in revenue and grants, while expenditure stood at MVR 5.9 billion; therefore, a surplus of MVR 1.9 billion has been recorded in the state budget till the end of the period.
Revenue has increased significantly compared to the same period last year. Revenue increased by 29.3 per cent this year compared to MVR 6.0 billion in 2025. The Ministry noted that out of this, 83 percent came in the form of taxes.
Tax revenue stood at MVR 6.5 billion as of February 26, which is an increase of 30.6 per cent compared to MVR 5.0 billion in the same period last year. The report notes that the biggest increase was in the tourism sector Goods and Services Tax (TGST). TGST collection stood at MVR 2.3 billion, up 39.4 percent from the previous year.
The Ministry further noted that GST, business and property taxes are still the biggest revenue sources for the state. Total GST collection stood at MVR 3.2 billion, an increase of 32.1 per cent over the same period last year. Business and property taxes stood at MVR 2.2 billion.
In terms of expenses, total expenses have remained stable compared to last year. However, expenditure on employee salaries and allowances increased by 9.6 percent. Salaries and pensions were spent at MVR 2.64 billion during the period, which is due to the pay harmonisation policy.
Additionally, the surplus rose to MVR 1.9 billion this year from MVR 98.2 million in the same period last year. In addition, the amount deposited in the Sovereign Development Fund (SDF) also increased by 2.5 per cent to MVR 287.1 million. The Ministry also noted that the foreign exchange earnings the state received are at USD 222.8 million for this period.
The Ministry of Finance said that at the beginning of each fiscal year, there are delays in compiling the financial statements for various reasons. In particular, the publication of the regular weekly "Weekly Fiscal Developments" report has been delayed due to changes in the structure of the state accounting system this year. These changes include the introduction of a sectoral grant system for the judiciary and the establishment of a separate ledger account for the Zakat Fund.
