Expenditure on salaries and allowances reaches MVR 9.39bn, marking an 11.1 percent increase compared to last year!
30 އޯގަސްޓު 2026 | އާދީއްތަ 11:00According to statistics from the Ministry of Finance, state expenditure has risen by 19.3 percent compared to last year, reaching MVR 28.74 billion. This increase is primarily attributed to higher spending on subsidies, the Aasandha health insurance scheme, and grants to local councils. However, total state revenue also saw a 10.4 percent growth, driven by an increase in collections from TGST and other taxes.
President Muizzu has stated that measures are being taken to reduce government spending. However, state expenditures have increased by 19.3 percent compared to last year, reaching 28.74 billion Rufiyaa. | Presidents Office
The Ministry of Finance has announced that 9.39 billion MVR was spent on salaries and allowances as of the 20th of this month, marking an 11.1 percent increase compared to the same period last year.
According to the Weekly Fiscal Developments report released by the Ministry of Finance and Public Enterprises, total expenditure—comprising both recurrent and capital spending—reached MVR 28.74 billion as of August 20, 2026. This represents a 19.3 percent increase compared to the MVR 24.09 billion recorded during the same period last year.
Of this total, recurrent expenditure amounted to MVR 25.00 billion, marking a 20.8 percent increase compared to the same period last year. Meanwhile, capital expenditure reached MVR 3.75 billion, representing a 10.2 percent rise over the corresponding period in the previous year.
Grants to local councils emerged as the most significant increase in recurrent expenditure over the past week. A total of MVR 1.66 billion has been disbursed as council grants, marking an increase of MVR 227.2 million—or 15.8 percent—compared to the same period in 2023.
Among other recurrent expenditures, 9.39 billion MVR was spent on salaries and allowances, marking an 11.1 percent increase compared to the previous year. Administrative and operational costs rose by 27.0 percent to reach 15.54 billion MVR. Within this category, spending on grants and subsidies surged by 43.0 percent to 8.47 billion MVR. This includes a 76.3 percent spike in subsidy spending, which totaled 3.54 billion MVR, while expenditure on the national health insurance scheme, Aasandha, rose by 13.5 percent to 1.43 billion MVR.
Under capital expenditure, 3.26 billion MVR has been spent on infrastructure development. This marks a 9.1 percent increase compared to the 2.99 billion MVR spent during the same period last year. Increased spending across various infrastructure sectors played a significant role in the overall rise in capital expenditure. Spending on land and buildings surged by 47.1 percent to reach 1.20 billion MVR, while expenditure on the construction of bridges and harbors rose by 63.9 percent to 284.5 million MVR. However, spending on roads, bridges, and airports saw a 32.1 percent decline compared to last year, falling to 961.3 million MVR.
According to the ministry's statistics, the state received MVR 27.61 billion in revenue and grants. This represents a 10.4 percent increase compared to the MVR 25.00 billion collected during the same period last year. The report highlighted that the primary driver for the increase in revenue last week was the income generated from the Tourism Goods and Services Tax (TGST).
Tourism Goods and Services Tax (TGST) remains a primary source of state revenue, with collections reaching MVR 7.39 billion as of August 20, 2026. This represents an increase of MVR 512.1 million, or 7.4 percent, compared to the MVR 6.88 billion recorded during the same period in 2025.
Revenue from Goods and Services Tax (GST) has also seen significant growth. Total collections rose to MVR 5.55 billion this year, compared to MVR 4.60 billion recorded during the same period last year. This represents an increase of MVR 944.3 million, or 20.5 percent.
Corporate income tax receipts rose by 7.1 percent to reach MVR 2.86 billion, while non-resident withholding tax collections grew by 10.2 percent to MVR 924.5 million. Furthermore, revenue from other business and property taxes saw a significant increase of 87.9 percent, totaling MVR 1.39 billion.
Total tax revenue reached MVR 21.48 billion, marking a 12.1 percent increase compared to the same period in 2025. Furthermore, import duty revenue rose by 16.6 percent to MVR 2.19 billion, while General GST collections saw a 10.8 percent growth, totaling MVR 3.53 billion.
Green Tax revenue saw a 6.2 percent increase, reaching MVR 1.40 billion, while combined revenue from Airport Service Charge and Departure Tax rose by 13.4 percent to MVR 1.24 billion. Income from the Airport Development Fee grew by 15.2 percent to MVR 1.27 billion, and revenue from goods increased by 31.9 percent, totaling MVR 1.68 billion. Furthermore, grant aid more than doubled, recording a 105.7 percent surge to reach MVR 455.7 million.
