The Maldivian government recorded stronger fiscal performance during the first six months of 2026, with total state revenue and grants reaching MVR 22.4 billion by 2 July, driven largely by higher tax collections.
According to the Ministry of Finance and Public Enterprises, increased revenue from Corporate Income Tax (CIT) and Goods and Services Tax (GST) contributed significantly to the improvement in the government’s financial position.
Revenue increases by over 10%
The ministry’s latest Weekly Fiscal Developments Report shows that government revenue rose by MVR 2.1 billion, or 10.4%, compared with the same period last year.
Total revenue increased from MVR 20.3 billion during the first half of 2025 to MVR 22.4 billion this year.
Tax revenue alone climbed from MVR 15.3 billion to MVR 17.3 billion, marking an increase of MVR 2 billion (13%).
The report states that:
- Corporate Income Tax generated MVR 1.7 billion.
- GST collections reached MVR 9.6 billion.
- Of the total GST revenue, MVR 6.6 billion came from the tourism sector.
- Overall GST revenue increased by 9.6% compared to the same period last year.
Government spending also rises
Government expenditure reached MVR 23.4 billion during the same period, an increase of MVR 4.2 billion compared with last year.
The increase was mainly driven by:
- Higher spending on salaries, wages and pensions.
- An additional MVR 1.4 billion spent on subsidies due to rising global commodity prices.
- Increased capital expenditure on development projects.
According to the ministry, spending on salaries and pensions totalled MVR 8 billion, while capital expenditure rose to MVR 3 billion, reflecting continued government investment in infrastructure and development.
Primary surplus recorded despite overall deficit
Despite higher expenditure, the government recorded a primary surplus of MVR 1.7 billion, indicating that regular government revenues were sufficient to cover operating expenses before debt servicing costs.
However, after accounting for all expenditure, including debt-related costs, the state budget remained in an overall deficit of MVR 975.9 million.
