A notable rise in national income has enabled the government to accelerate Public Sector Investment Programs (PSIP), supported largely by increased revenue from the Tourism Goods and Services Tax (TGST).
According to the Finance Ministry’s latest weekly fiscal report, national revenue— including grant aid—reached MVR 36.9 billion as of December 18th, marking an increase of MVR 3.8 billion compared to 2024. The boost is primarily driven by TGST collections, which amounted to MVR 10.1 billion, up by MVR 1.3 billion from last year’s MVR 8.8 billion.
Overall tax revenue rose to MVR 27.5 billion this year, compared to MVR 25 billion in 2024, an improvement of MVR 2.5 billion. Meanwhile, non-tax income increased to MVR 9.1 billion, up from MVR 7.5 billion last year.
Government expenditure up to December 18th reached MVR 38.9 billion, with the largest share allocated to debt repayment. Recurrent expenses included MVR 3.4 billion on subsidies, which is MVR 3.6 billion less than the previous year.
Development investments also saw a rise, with MVR 7.5 billion spent on PSIP initiatives. The transport sector received the largest allocation, with MVR 4.4 billion, including MVR 3.2 billion for airport development and MVR 870.3 million for bridge projects. Health sector PSIP spending reached MVR 453.1 million, a significant increase of MVR 307.7 million compared to last year’s MVR 145.5 million.
The national budget deficit has also improved significantly, reducing to MVR 2 billion, compared to last year’s deficit of MVR 11.5 billion—reflecting strengthened fiscal stability driven by increased revenue and improved expenditure management.
