State spending reaches 35.4 billion by October 1, with salaries accounting for the largest expenditure!
7 އޮކްޓޯބަރު 2026 | ބުދަ 09:12State spending has surged by 18.2 percent compared to last year, driven primarily by rising administrative costs and subsidy expenditures. Despite this increase in spending, total state revenue grew by 1.8 percent, bolstered by a significant rise in tax collections, particularly from business taxes and airport development fees.
Total government expenditure has increased by 18.2 percent compared to last year, driven by a rise in administrative costs and subsidy spending. | President's Office
Statistics from the Ministry of Finance reveal that total government expenditure reached MVR 35.456 billion by October 1, 2024.
According to the Weekly Fiscal Developments report released by the Ministry, total state expenditure reached MVR 35.456 billion as of October 1, 2026. This represents an 18.2 percent increase compared to the MVR 30.008 billion spent during the same period in 2025. Recurrent expenditure rose by 18.5 percent to MVR 30.653 billion, with the highest costs attributed to staff salaries and benefits. Spending on salaries and allowances saw a 14.1 percent increase, totaling MVR 5.555 billion.
Other operational expenditures have also seen an increase compared to the previous year. Administrative and operational costs rose by 23.8 percent to reach MVR 18.539 billion, while spending on grants and subsidies surged by 44.3 percent to MVR 10.169 billion. Within this category, subsidy spending grew by 75.1 percent to MVR 4.203 billion, and expenditure on the national health insurance scheme, Aasandha, increased by 25.1 percent to MVR 1.864 billion.
Total revenue and grants reached MVR 30.879 billion, marking a 1.8 percent increase compared to the MVR 30.342 billion recorded during the same period last year, according to statistics from the Ministry of Finance. The primary driver behind this growth in state revenue was a 5.8 percent rise in tax collections.
Tax revenue rose from MVR 22.528 billion to MVR 23.835 billion. According to financial statistics, the most significant increase in revenue last week was driven by Tourism Goods and Services Tax (TGST).
Among tourism-related taxes, the highest revenue was generated from TGST, amounting to MVR 8.062 billion. This represents a 1.4 percent decrease compared to the MVR 8.172 billion collected during the same period in 2025.
Furthermore, revenue from airport service charges and departure taxes rose by 8.2 percent, reaching 1.529 billion Rufiyaa. This marks an increase compared to the 1.412 billion Rufiyaa collected during the same period last year.
Business and property taxes rose by 21.2 percent to reach MVR 5.782 billion, while import duties saw an 11.4 percent increase, totaling MVR 2.513 billion. General Goods and Services Tax (GST) collections grew by 2.8 percent to MVR 4.132 billion. Within non-tax revenue streams, Airport Development Fees increased by 8.1 percent to MVR 1.552 billion, and property-related income rose by 13.5 percent to MVR 1.948 billion. Additionally, official grants received by the state surged by 84.7 percent, reaching MVR 0.513 billion.
