Recurrent expenditure rises 17.2 percent to MVR 31.35 billion, with MVR 5.56 billion spent on salaries and allowances!
21 އޮކްޓޯބަރު 2026 | ބުދަ 15:21The national budget deficit has surged to MVR 4.50 billion due to a significant rise in both recurrent and capital expenditures, according to the latest statistics from the Ministry of Finance. While spending on subsidies, the Aasandha healthcare scheme, and civil service wages has increased, the figures also indicate a year-on-year growth in tax revenue and foreign aid.
President Muizzu and his Cabinet ministers attend a Cabinet meeting. | President's Office
Statistics from the Ministry of Finance reveal that administrative service expenditures have risen by 6.0 percent, reaching a total of MVR 2.04 billion.
According to the Weekly Fiscal Developments report released by the Ministry, administrative service expenditures have risen by 6.0 percent, reaching MVR 2.04 billion. The statistics further reveal that total recurrent expenditure has climbed to MVR 31.35 billion, marking a 17.2 percent increase compared to the previous year.
Expenditure on grants and subsidies, categorized under recurrent costs, has surged by 39.1 percent to reach MVR 10.45 billion. Within this category, spending on subsidies saw a significant increase of 73.3 percent, totaling MVR 4.31 billion, while expenditure on the national health insurance scheme, Aasandha, rose by 16.9 percent to MVR 1.92 billion.
Expenditure on employee salaries and benefits rose by 14.1 percent, reaching MVR 5.56 billion. Conversely, interest payments saw a decline of 6.6 percent. Capital expenditure on land and buildings surged by 38.9 percent compared to the same period in 2025, totaling MVR 1.57 billion. Overall capital expenditure increased by 15.2 percent to reach MVR 5.04 billion.
Spending on other infrastructure projects rose by 27.6 percent to reach MVR 0.96 billion, while expenditure on harbor development saw an increase of 25.5 percent. Additionally, spending on the acquisition of capital equipment grew by 22.0 percent.
Total government expenditure reached MVR 36.39 billion as of October 15, 2026. This represents a 16.9 percent increase compared to the same period in 2025. Consequently, the overall state budget deficit has risen to MVR 4.50 billion.
Statistics show that state tax revenue collected up to October 15, 2026, has increased by 7.0 percent compared to the same period last year. This growth is primarily attributed to a rise in receipts from General Goods and Services Tax (GGST), Non-Resident Withholding Tax, and other key revenue sectors.
Tax revenue for the current year has reached MVR 24.63 billion, compared to MVR 23.03 billion recorded during the same period in 2023. Total state revenue, including grants, saw a 2.6 percent increase, rising to MVR 31.89 billion.
Revenue from Tourism Goods and Services Tax (TGST) rose by 8.2 percent to MVR 4.43 billion compared to the same period in 2025. During the corresponding period last year, the sector generated MVR 4.09 billion.
Revenue from Non-Resident Withholding Tax has increased by 10.4 percent, reaching MVR 1.09 billion. Furthermore, other sectors have also shown positive growth in revenue. Import duty collections rose by 15.2 percent to MVR 2.79 billion, while corporate income tax revenue saw a 9.2 percent increase, totaling MVR 3.01 billion.
Revenue from business and other goods-related taxes surged by 87.8 percent, reaching MVR 1.39 billion. Income generated from airport service charges and departure taxes rose by 8.8 percent to MVR 1.55 billion. Meanwhile, revenue from goods increased by 12.1 percent to MVR 1.97 billion, as grant aid saw a significant 68.1 percent boost, totaling MVR 0.52 billion.
