Government revenue and grants rose by 7.5 percent in the first four months of the year, outpacing increased expenditure and resulting in a budget surplus, according to official figures.

The Ministry of Finance’s weekly fiscal development report showed total revenue and grants reached MVR 15.4 billion by the end of April, up from MVR 14.3 billion in the same period last year.

The increase was driven largely by higher Tourism Goods and Services Tax (TGST) receipts, which rose 11.7 percent from MVR 4.6 billion to MVR 5.1 billion.

Overall tax revenue stood at MVR 12.3 billion as of 30 April, marking a 13 percent increase compared to 2025. However, non-tax revenue declined to MVR 3 billion from MVR 3.3 billion.

Government spending also rose during the period. Total expenditure reached MVR 14.3 billion by the end of April, up 13.8 percent from MVR 12.6 billion a year earlier.

Recurrent expenditure; the largest component of spending, increased by 11.1 percent to MVR 12.6 billion. The most significant rise within this category was in salaries and allowances, which climbed 10.5 percent to MVR 4.5 billion.

Total spending on salaries, wages and pensions stood at MVR 5.3 billion, up 10.1 percent compared with the same period last year.

Despite the rise in expenditure, stronger revenue performance, particularly from tourism taxes,  left the government with a fiscal surplus of MVR 1 billion at the end of April.