According to the publication, the main reason for the increase in government revenue was a 9.8 percent increase in tax revenue.
PSM News
The total revenue and grants received by the state stood at MVR33.36 billion as of 22 October 2026, up 5.6 per cent from MVR31.60 billion in the same period in 2025, according to the latest weekly fiscal report released by the Ministry of Finance and Public Enterprises Developments report.
The main reason for the increase in government revenue was a 9.8 percent increase in tax revenue. Tax revenue stood at MVR 23.44 billion in the same period last year, up from MVR 25.73 billion this year.
The Goods and Services Tax (TGST) on tourism is one of the largest contributors to the state’s revenue. TGST revenue increased by 5.7 percent to MVR 8.87 billion. In addition, green tax revenue increased by 2.6 per cent to MVR 1.78 billion.
As for other revenue sources, business and property taxes increased by 21.8 percent to MVR 5.97 billion. Import duty increased by 11.0 percent to MVR 2.82 billion, while General Goods and Services Tax (GST) collection stood at MVR 4.46 billion. Non-tax revenue also saw an increase in resort rentals and airport development fees. However, overall non-tax revenue fell 9.5 percent.
As of 22 October 2026, the total expenditure stood at MVR 37.21 billion. This is an increase of 17.0 percent over the same period last year. Operating expenditure or recurrent expenditure rose to MVR32.00 billion, while capital expenditure on development projects increased to Rs 5.21 billion.
Grants to councils increased by 15.9 percent to MVR 2.08 billion during the period. Among capital expenditures, expenditure on land reclamation and land management projects increased by 89.7 percent. Expenditure on buildings and land also increased to MVR 1.69 billion.
On additional expenditure, expenditure on subsidies increased by 58.6 percent to MVR 4.31 billion due to the increase in fuel prices, a direct impact due to the unrest in the Middle East. Expenditure on salaries and pensions increased to MVR 12.05 billion.
As of 22 October 2026, the government recorded a primary surplus of MVR 0.27 billion, but the overall fiscal balance stood at a deficit of MVR 3.85 billion.
