Maldives Records Strong Income from Tourism Tax While Capital Spending Stalls

New fiscal data shows that revenue from the tourism-related Goods and Services Tax (TGST) has once again emerged as a main source of tax income for the Maldives, while public infrastructure spending has remained subdued.

According to the latest Weekly Fiscal Developments report, total revenue and grants collected by the government reached MVR 34,966.8 million in the period under review. The rise was driven largely by strong collections from Tourism GST, along with increased non-tax revenues such as fees, charges and property income.

On the spending side, however, the report reveals a marked slowdown in capital expenditure. As of 27 November 2025, total capital spending stood at just MVR 5,212.1 million — less than half of the approved annual budget.

Most major sectors such as land and infrastructure development, housing, environmental protection, health services and education showed lower-than-expected disbursements. Transport — particularly airport and bridge projects — remained among the few categories close to last year’s spending pace.

Meanwhile, recurrent expenditure — covering salaries, wages and administrative costs — rose steadily, pushing total expenditure to MVR 36,405.1 million.

The contrasting trends suggest that while the tourism tax regime continues to support government revenue, many public investment and development plans face delays or slow execution. Analysts say this could raise concerns about the long-term impact on infrastructure and development goals, especially if capital spending remains restrained.