The Maldives has recorded a 4.4% year-on-year increase in state revenue, reflecting positive fiscal momentum, according to the Ministry of Finance and Planning’s latest Weekly Fiscal Developments Report.
As of 19 March, total government revenue and grants stood at USD 609 million, up from USD 583 million during the same period last year.
The growth was driven largely by tax revenue, which accounted for 82% of total state income at USD 499 million. Goods and Services Tax (GST) remained the largest contributor, with collections rising by 10.8% to USD 259 million. This included USD 188.1 million from Tourism Sector GST (TGST) and USD 71 million from General GST.
Revenue from business and property taxes also recorded a significant increase of 24.8%, reaching USD 142 million. Other major tax components included corporate income tax at USD 77 million and green tax revenue of USD 32 million.
On the expenditure side, total government spending as of 19 March was recorded at USD 473 million, marking a 10.3% decrease compared with the same period last year. This reduction was driven by a 10.5% fall in recurrent expenditure and a 7.8% decline in capital spending.
However, expenditure on public sector salaries and allowances rose by 3% to USD 175 million, in line with the policy to harmonise public sector salaries introduced in November 2025.
The combination of higher revenue and reduced expenditure resulted in a significantly improved fiscal position. The overall budget recorded a surplus of USD 136.2 million, representing a 140.7% increase compared with the previous year.
The improved fiscal performance has also enabled an 8.6% increase in contributions to the Sovereign Development Fund (SDF), alongside an 18% rise in block grants allocated to local councils.