Government revenue up 8.5 percent to MVR 30 billion so far this year

Government revenue and grants have risen by 8.5 percent compared with the same period last year, reaching MVR 30.7 billion as of 16 October, according to the latest figures from the finance ministry.

After a three week pause, the ministry resumed publishing its weekly fiscal report yesterday.

The figures show that tax revenue accounted for the largest share, with MVR 23 billion collected , which is 75.1 percent of total revenue.

Revenue from the green tax surged by 105.3 percent, while departure tax receipts rose by 56.4 percent, reflecting the increase in tourist arrivals. Non-tax revenue grew by 9.6 percent, with airport development fees up 61 percent on the same period last year.

Officials attributed the rise to a 10 percent increase in tourist arrivals compared with 2023, along with higher land acquisition and lease extension fees from resorts. Contributions to the Sovereign Development Fund climbed by 45.3 percent to MVR 1.6 billion.

While revenue rose, total government expenditure fell by 15.3 percent from last year, reflecting ongoing fiscal reform measures. Spending stood at MVR 30.5 billion by mid-October.

Recurrent expenditure fell slightly by 0.2 percent, while capital spending dropped by 58.1 percent. Administrative costs made up 59.1 percent of recurrent expenditure, down 2.9 percent from 2024. Office supply costs fell by 13 percent and maintenance expenses declined by 3.3 percent.

However, spending on salaries and pensions increased, reaching MVR 10.8 billion compared with MVR 10.2 billion during the same period last year.

The steep fall in capital expenditure was the main driver of lower total spending, the report said.

Capital expenditure totaled MVR 4 billion, down by MVR 5.5 billion during the same period last year.

Under the Public Sector Investment Programme (PSIP), MVR 12.4 billion was allocated for the year, with MVR 5.9 billion spent so far.

Debt repayment costs reached MVR 4.4 billion, more than double the MVR 2 billion recorded in 2024, largely due to higher interest payments on previous loans.

The government maintained an overall budget surplus of MVR 186.7 million, supported by stronger revenues and reduced spending.