According to the latest financial statistics from the Ministry of Finance, expenditure on infrastructure projects so far this year has increased compared to the previous year.
The Weekly Fiscal Development Report published by the ministry indicates that the total capital expenditure up to the 4th of this month stands at MVR 2.32 billion.
During the same period last year, MVR 1.86 billion was spent as capital expenditure.
While more than MVR 2 billion has been spent so far this year solely on infrastructure facilities, which are included under capital expenditure, that figure stood at MVR 1.65 billion last year.
Alongside capital expenditure, state administrative costs have also increased.
In this regard, while MVR 16.87 billion has been spent so far this year, that figure stood at MVR 14.47 billion during the same period last year.
Out of this, MVR 6.6 billion was spent on salaries and pensions. This is an increase of approximately MVR 600 million compared to last year.
The total of MVR 19.2 billion spent on recurrent and capital expenditure is a 17.6 percent increase compared to last year.
In addition to PSIP expenditures, spending on subsidies has grown this year compared to the same period in 2025, due to the rise in oil prices on the global market caused by the ongoing war in the Middle East.
Accordingly, while MVR 1.3 billion was spent on subsidies up to June 4, 2025, MVR 2.3 billion has been spent during this period this year, meaning the expenditure on this has roughly doubled.
State revenue received this year has increased along with the growth in Tourism Goods and Services Tax (TGST).
According to this report, the total revenue and grants received by the state up to June 4 has risen to MVR 19.1 billion. This is an increase of MVR 1.8 billion or 10.1 percent compared to the MVR 17.3 billion received during the same period last year.
When accounting for the tax revenue that makes up the largest portion of the income received by the state, while MVR 13.2 billion was received as tax during this period last year, that figure has risen to MVR 14.8 billion so far this year, achieving a growth of 12.4 percent. Tax revenue accounted for 78 percent of the total revenue received by the state.
The primary reason for this growth is the revenue received as TGST. While MVR 5.6 billion was received as TGST during this period last year, that figure has risen to MVR 6 billion this year.
Furthermore, the revenue received as General Goods and Services Tax (GST) has also increased from MVR 2.2 billion to MVR 2.5 billion.
