According to the report, tax revenue remained the dominant source of income, accounting for MVR 8.6 billion, or 81 percent of total revenue.
Ministry of Finance
The State recorded total revenue and grants of MVR 10.6 billion, reflecting a 10.2 percent increase compared to MVR 9.6 billion in the same period last year, according to the Ministry of Finance and Planning’s Weekly Fiscal Developments Report covering up to 26 March 2026. During the period, the overall state budget also registered a surplus of MVR 2.2 billion.
Tax revenue remained the dominant source of income, accounting for MVR 8.6 billion, or 81 percent of total revenue. The most notable growth was seen in the Tourism Goods and Services Tax (TGST), which continued to drive overall revenue performance.
TGST collections rose by 23.9 percent to MVR 3.3 billion, up from MVR 2.7 billion in the same period last year, making it the single largest contributor among goods and services taxes. Non-resident withholding tax revenue also saw a significant increase of 59.0 percent, reaching MVR 516.4 million compared to MVR 324.8 million in the corresponding period last year. In addition, non-tax revenue from resort land rentals grew by 14.7 percent to MVR 332.5 million. Overall foreign exchange earnings surpassed USD 300 million, underscoring continued economic strength.
On the expenditure side, total spending as of 26 March 2026 stood at MVR 8.4 billion. The largest share was directed toward employee salaries, allowances, and pensions, which amounted to MVR 3.2 billion.
Recurrent expenditure on subsidies increased by 8.8 percent to MVR 891.2 million compared to the same period last year, while total aid and subsidies reached MVR 2.6 billion. Capital expenditure also recorded a sharp increase, with spending on land reclamation and construction projects rising by 137.5 percent to MVR 442.7 million.
The report further noted that a total of USD 520.6 million has been deposited into the Sovereign Development Fund (SDF) to strengthen the State’s financial resilience, including MVR 95.5 million deposited during the past week. According to the report, the combination of rising revenue and expenditure control measures is expected to further improve the State’s fiscal position in the coming period.
