State revenue rises to MVR 22.4 billion on higher tax collection

The Maldivian government's total revenue and grants reached MVR 22.4 billion in the first six months of 2026, driven by higher collections from corporate income tax and Goods and Services Tax (GST), according to the Ministry of Finance and Public Enterprises.

The Ministry's latest Weekly Fiscal Developments report showed that cumulative revenue and grants for the period from 1 January to 2 July 2026 stood at MVR 22,404.1 million. This is an increase of MVR 2.1 billion, or 10.4 percent, compared to MVR 20,288.9 million collected during the same period last year.

Tax revenue accounted for the largest share of state income. Tax collections rose from MVR 15.3 billion in the same period last year to MVR 17.3 billion this year, an increase of MVR 2.0 billion, or 13.0 percent.

Corporate income tax recorded the largest increase, which the ministry attributed to rising business activity and the timing of the corporate tax payment deadline falling within the period. Corporate income tax revenue totalled MVR 1.7 billion, up MVR 97.7 million, or 6.2 percent, from the same period in 2025.

GST also contributed significantly to state revenue. Total GST collections reached MVR 9.6 billion, up MVR 835.4 million, or 9.6 percent, from last year. This included MVR 2.9 billion from General GST and MVR 6.6 billion from Tourism GST (TGST).

On the expenditure side, the government spent a total of MVR 23.4 billion during the period, an increase of MVR 4.2 billion, or 21.7 percent, compared to MVR 19.2 billion in the same period last year. The ministry said the largest driver of the increase last week was higher spending on employee salaries and allowances.

The ministry also noted that despite rising global oil and commodity prices linked to the ongoing conflict in the Middle East, subsidy expenditure aimed at keeping the cost of essential goods and services stable rose by MVR 1.4 billion so far this year. The ministry described this as reflecting the government's priority of maintaining uninterrupted public services and meeting civil service salary commitments.

Total spending on salaries and wages reached MVR 3.7 billion, up 13.9 percent from last year, while total spending on salaries and pensions combined reached MVR 8.0 billion. Recurrent expenditure stood at MVR 20.3 billion, while capital expenditure rose to MVR 3.0 billion, which the ministry said reflected increased government investment in infrastructure development projects.

Despite the rise in expenditure, the government recorded a primary surplus of MVR 1.7 billion, a measure that excludes debt repayment and interest costs and indicates that current revenue was sufficient to cover recurrent spending. However, once all expenditure is included, the overall budget balance showed a deficit of MVR 975.9 million.