Total state expenditure reaches MVR 37.2 billion, marking a 17 percent increase compared to 2025
1 ނޮވެމްބަރު 2026 | އާދީއްތަ 13:08According to statistics from the Ministry of Finance, the state budget has incurred a deficit of MVR 3.85 billion despite a 5.6 percent increase in revenue, driven primarily by rising recurrent expenditures such as subsidies and the Aasandha health insurance scheme. While revenue growth was bolstered by higher collections from TGST and import duties, overall spending was further pushed upward by a significant year-on-year increase in capital expenditure for land reclamation and infrastructure development projects.
President Muizzu and the Cabinet of Ministers during a cabinet meeting. | President's Office
Total government expenditure reached MVR 37.21 billion as of October 22, 2026, according to the latest statistics released by the Ministry of Finance.
According to the latest Weekly Fiscal Developments report released by the Ministry of Finance, total state expenditure reached MVR 37.21 billion as of October 22, 2026. This represents a 17.0 percent increase compared to the same period last year. Within this total, recurrent expenditure rose to MVR 32.00 billion, while capital expenditure for development projects increased to MVR 5.21 billion.
During this period, grants issued to local councils rose by 15.9 percent, reaching MVR 2.08 billion. Within capital expenditures, spending on land reclamation and land management projects saw a significant surge of 89.7 percent. Additionally, expenditure on buildings and land increased to MVR 1.69 billion.
Regarding additional expenditures, spending on subsidies rose by 58.6 percent to reach MVR 4.31 billion, while Aasandha health insurance costs climbed to MVR 1.94 billion. Furthermore, total expenditure on salaries and pensions increased to MVR 12.05 billion.
As of October 22, 2026, the state's financial records indicate a primary surplus of MVR 0.27 billion; however, the overall fiscal balance remains at a deficit of MVR 3.85 billion.
Total state revenue and grants for the period reached MVR 33.36 billion, marking a 5.6 percent increase compared to the MVR 31.60 billion recorded during the same period in 2025.
The primary driver behind the increase in state revenue is a 9.8 percent rise in tax earnings. Specifically, tax revenue grew to MVR 25.73 billion this year, up from the MVR 23.44 billion recorded during the same period last year.
Tourism Goods and Services Tax (TGST) remains one of the primary contributors to state revenue. Earnings from TGST saw a 5.7 percent increase, reaching a total of MVR 8.87 billion. Additionally, revenue from Green Tax rose by 2.6 percent, climbing to MVR 1.78 billion.
Looking at other revenue streams, taxes on business and property rose by 21.8 percent, reaching MVR 5.97 billion. Import duties saw an 11.0 percent increase, totaling MVR 2.82 billion, while General Goods and Services Tax (GGST) collections amounted to MVR 4.46 billion. Within non-tax revenue, growth was recorded in resort lease rents and Airport Development Fees. However, overall non-tax revenue experienced a decline of 9.5 percent.
