State Revenue Rises 9.3% on Higher Corporate Income Tax and GGST Collections

State revenue and grants increased by 9.3% year-on-year to MVR 26.5 billion as of August 6, 2026, supported by higher collections from Corporate Income Tax, General Goods and Services Tax (GGST), and several other major revenue sources.

According to the latest Weekly Fiscal Developments Report published by the Ministry of Finance and Public Enterprises, the government recorded MVR 24.2 billion in total revenue and grants during the corresponding period of 2025.

Tax revenue, which accounts for the largest share of government income, rose by 10.1%, from MVR 18.7 billion last year to MVR 20.5 billion this year.

Corporate Income Tax generated MVR 2.7 billion as of August 6, representing a 1.4% increase compared with MVR 2.6 billion collected during the same period last year.

Revenue from GGST increased by 10.4%, reaching MVR 3.4 billion, compared with MVR 3.1 billion in 2025. This represents an additional MVR 323.7 million in GGST collections.

Overall Goods and Services Tax revenue stood at MVR 10.5 billion, up from MVR 9.9 billion during the same period last year. Of this, Tourism Goods and Services Tax (TGST) accounted for MVR 7.1 billion, while GGST contributed MVR 3.4 billion.

Several other major revenue streams also recorded growth. Import duty collections rose by 13.2% from MVR 1.8 billion to MVR 2.0 billion, while Business Profit Tax revenue increased by 18.5%, from MVR 4.5 billion to MVR 5.3 billion.

Non-Resident Withholding Tax increased by 15.8% to MVR 885.0 million, while Green Tax revenue rose by 4.0% to MVR 1.3 billion. Revenue from Airport Service Charge and Departure Tax increased by 14.9% to MVR 1.2 billion.

Non-tax revenue reached MVR 5.5 billion, up 2.6% from MVR 5.3 billion in the same period last year. Revenue from property and assets increased significantly by 33.1% to MVR 1.7 billion, while dividends from state-owned enterprises rose by 17.0% to MVR 483.1 million.

Meanwhile, grants received by the state more than doubled, reaching MVR 454.8 million, compared with MVR 221.2 million during the same period in 2025.

The report also shows a significant increase in government debt repayments, with the largest share of expenditure during the past week allocated to servicing foreign loans.

As of August 6, debt repayments totalled MVR 9.6 billion, compared with MVR 3.9 billion during the same period last year. This represents a 146.0% year-on-year increase.

The government has budgeted MVR 12.9 billion for debt repayments for the full year.

Recurrent expenditure also increased by 20.2%, rising from MVR 19.9 billion in 2025 to MVR 23.9 billion this year.

Spending on salaries, allowances and pensions increased by 11.2% to MVR 9.4 billion, while operational and administrative expenditure rose by 26.3% to MVR 14.4 billion.

Expenditure on grants and subsidies increased by 43.3% to MVR 7.8 billion. Within this category, subsidy spending surged by 75.7% to MVR 3.2 billion, while expenditure on Aasandha increased by 17.2% to MVR 1.3 billion.

Capital expenditure rose by 7.0%, from MVR 3.1 billion last year to MVR 3.4 billion this year.

Spending on land and buildings increased by 57.9% to MVR 1.1 billion, while expenditure on bridges and ports rose by 65.9% to MVR 261.0 million. Spending on other infrastructure projects increased by 39.1% to MVR 791.2 million, while capital equipment expenditure rose by 12.1% to MVR 416.8 million.

As of August 6, 2026, the state recorded an overall fiscal deficit of MVR 792.8 million, while the primary balance remained in surplus at MVR 2.4 billion.