State expenditure reaches MVR 38.99 billion, as spending on salaries surges by 14.7 percent to MVR 6.15 billion!
4 ނޮވެމްބަރު 2026 | ބުދަ 08:14Driven by a growth in state revenue, total receipts reached MVR 34.52 billion, with Tourism Goods and Services Tax (TGST) and corporate taxes serving as the primary contributors. However, the budget recorded a deficit of MVR 4.47 billion due to rising capital expenditure and increased recurrent spending on subsidies and the Aasandha healthcare scheme. Additionally, expenditures on civil service salaries and administrative operations saw a significant uptick during this period.
President Muizzu and the Cabinet of Ministers during a cabinet meeting. | President's Office
Statistics from the Ministry of Finance reveal that total government expenditure reached MVR 38.99 billion as of October 29, 2026.
According to the Weekly Fiscal Developments report released by the Ministry, total state expenditure reached MVR 38.99 billion as of October 29, 2026. The Ministry noted that this represents a 16.2 percent increase compared to the same period in 2025.
Recurrent expenditure rose by 16.9 percent to MVR 33.68 billion, while capital expenditure saw a 12.0 percent increase, reaching MVR 5.30 billion.
Expenditure on employee salaries and benefits rose by 14.7 percent to reach MVR 6.15 billion, while administrative and operational costs amounted to MVR 20.28 billion. Capital expenditure on infrastructure, such as land and buildings, saw a 10.4 percent increase, totaling MVR 4.63 billion. Within this category, spending on land and buildings surged by 35.4 percent, while expenditure on bridges and harbors also grew by 20.1 percent.
Expenditure on grants and subsidies, categorized under other essential recurrent costs, surged by 34.9 percent to reach MVR 10.81 billion. Within this category, MVR 4.31 billion was spent on subsidies, while MVR 1.96 billion was allocated to the national health insurance scheme, Aasandha. Additionally, MVR 2.08 billion was disbursed as grants to local councils.
As of October 29, 2026, the state budget recorded an overall deficit of MVR 4.47 billion. Meanwhile, the primary balance stood at a deficit of MVR 0.33 billion.
The Ministry stated that total state revenue and grants reached MVR 34.52 billion during this period. This represents a 5.3 percent increase compared to the MVR 32.79 billion recorded during the same period in 2023.
The primary driver of this growth was a significant shift in tax revenue. In this regard, tax receipts rose by 9.1 percent to reach MVR 26.70 billion, compared to the MVR 24.48 billion recorded during the same period last year.
Revenue from the Tourism Goods and Services Tax (TGST), the largest contributor to state income, has increased by 5.0 percent. This marks a rise from MVR 8.88 billion during the same period in 2023 to MVR 9.32 billion. Furthermore, as tourism sector revenue continues to show sustainable growth, TGST remained the highest source of income over the past week.
Looking at other revenue streams, taxes on business and property rose by 23.7 percent to reach MVR 6.07 billion. Import duties saw a 12.3 percent increase, totaling MVR 2.90 billion, while General Goods and Services Tax (GGST) collections amounted to MVR 4.63 billion. Revenue from Green Tax grew by 2.3 percent, reaching MVR 1.88 billion. Within non-tax revenue, income from property increased by 28.2 percent to MVR 2.27 billion, driven primarily by a rise in resort lease rent. Despite receiving MVR 0.53 billion in grants, total non-tax revenue declined by 8.8 percent.
