Tax revenues’ constant resilience in contribution, PSIP spending picks up


Image: Shahee Ilyas

The cumulative tax revenue total has hit MVR13,071.3 million while non tax revenues have cumulated to hit MVR4,065.3 million as of 10 October 2019.

According to the Weekly Fiscal Development from Maldives Ministry of Finance, the strongest receipts to state were unsurprisingly generated from tax sources like TGST, GGST, Import Duty and BPT.

As of the review week, the total GST collection – with both TGST and GGST combined – has reached MVR5,926.3 million. The cumulative total of TGST has reached MVR3,769.6 million whereas the second strongest revenue contributor to state as of the review week; Import Duty has made a collection of MVR2,426.3 million.

GGST contributed the third highest to state as of 10 October, with a cumulative collection of MVR2,156.7 million. The Business Profit Tax (BPT) collection has reached MVR2,148.8 million. The Business Property Tax – which combines BPT along with Withholding Tax and other property taxes – has reached a collective total of MVR3,318.9 million.

Withholding Tax has reached MVR533.0 million while other business and property related taxes has reached a cumulative collection of MVR637.1 million.

Green Tax collection has reached MVR660.9 million while Airport Service Charge has reached a cumulative collection of MVR555.5 million.

As for non-tax revenues, Airport Development Fee has reached MVR556.5 million. The strongest non-tax revenue contributor to state is the rent from resorts, which has reached a cumulative collection of MVR1,276.0 million.

Dividends from State-Owned Enterprises (SOEs) have reached MVR545.2 million.

Looking at the expenditure, the total recurrent expenditure as of 10 October has reached MVR14,891.7 million. Under the segment, state has spent MVR7,393.5 million on salaries, wages and pensions of public sector employees.

The administrative and operational expenses of the state have reached MVR6,480.5 million. Maldives state has spent MVR981.7 million on subsidies so far in 2019 and another MVR820.7 million on Aasandha – the state-initiated health insurance scheme.

The capital expenditure has hit a cumulative total of MVR4,724.4 million. The Maldives government has spent MVR290.5 million on capital equipment while MVR2,731.5 million has been spent on Public Sector Investment Program (PSIP).

The PSIP segment slowed down earlier this year, but it has since then picked up on the spending curve with state injecting considerably for developmental projects throughout Maldives.