State Foreign Currency Revenue Hits USD 222.8 Million; Fiscal Surplus Expands to MVR 1.9 Billion

The state recorded foreign currency revenue of USD 222.8 million by 26 February 2026, alongside a budget surplus of MVR 1.9 billion, reflecting a strengthened fiscal position in the opening weeks of the year, according to the Weekly Fiscal Development Report for the eighth week of 2026 published by the Ministry of Finance and Planning.

Between 1 January and 26 February 2026, total revenue and grants reached MVR 7.8 billion, while total expenditure stood at MVR 5.9 billion. The resulting surplus marks a significant increase from the MVR 98.2 million recorded during the same period in 2025.

Revenue performance showed notable growth year on year. Total revenue increased by 29.3 percent compared to the MVR 6.0 billion collected in the corresponding period last year. Tax revenue accounted for 83 percent of total income, underscoring the continued reliance on taxation as the primary driver of state finances.

By late February, tax revenue had reached MVR 6.5 billion, representing a 30.6 percent increase from the MVR 5.0 billion collected in early 2025. The most significant growth was recorded in Tourism Goods and Services Tax, which generated MVR 2.3 billion, up 39.4 percent from the previous year.

Overall Goods and Services Tax collections reached MVR 3.2 billion, reflecting a 32.1 percent increase year on year. Taxes on business and property contributed MVR 2.2 billion, maintaining their position among the largest revenue streams.

On the expenditure side, total spending remained relatively stable compared to the same period last year. However, expenditure on staff salaries and allowances increased by 9.6 percent. A total of MVR 2.64 billion was allocated to salaries and pensions during the reporting period, largely attributed to the implementation of the government’s pay harmonization policy.

The stronger fiscal position also supported increased contributions to the Sovereign Development Fund, which rose by 2.5 percent to MVR 287.1 million. The Ministry reported that USD 222.8 million in foreign currency was received during the reporting period, reinforcing external revenue inflows.

The Ministry of Finance stated that financial statement releases are often delayed at the beginning of each fiscal year. This year, publication of the Weekly Fiscal Developments report was delayed due to structural changes introduced to the state accounting system.

These changes include the introduction of a Sectoral Grant system for the judiciary and the establishment of a dedicated ledger account for the Zakat Fund. The Ministry noted that reorganization of the accounting framework in line with these reforms, along with the reconciliation of certain financial accounts, contributed to the timing of the report’s release.

The early fiscal data indicates strong revenue momentum at the start of 2026, with robust tax collection and stable expenditure levels underpinning the recorded surplus and foreign currency earnings.