The Ministry of Finance has announced that the total revenue and grants received by the state have reached MVR 36.9 billion as of December 18th of this month.

The Ministry stated today that this represents an increase of MVR 3.8 billion, or 11.5 percent, compared to the MVR 33.1 billion received during the same period in 2024. According to the Ministry's Weekly Fiscal Report, the most significant increase in revenue during the past week was attributed to TGST (Tourism Goods and Services Tax).

Specifically, a total of MVR 10.1 billion was collected as TGST, marking an increase of MVR 1.3 billion, or 15.1 percent, compared to the MVR 8.8 billion received in the corresponding period last year. Overall, MVR 15.2 billion was received as GST, with TGST contributing the largest share. The Ministry of Finance noted that this has led to an acceleration in the practical implementation of Public Sector Investment Program (PSIP) projects.

Regarding other revenue streams, tax revenue increased by MVR 2.5 billion, or 10.0 percent, from MVR 25.0 billion in the same period last year to MVR 27.5 billion. Non-tax revenue also saw an increase of MVR 1.6 billion, or 21.2 percent, rising from MVR 7.5 billion to MVR 9.1 billion, as detailed in the report.

The report indicates that total expenditures amounted to MVR 38.9 billion as of December 18th. The primary reason for the increase in expenditures over the past week was debt servicing costs. Among recurrent expenditures, a significant expense was subsidies, totaling MVR 3.4 billion. This is MVR 190.3 million, or 5.3 percent, less than the MVR 3.6 billion spent during the same period in 2024.

As of December 18th, a total of MVR 7.5 billion has been spent on PSIP projects, with the largest portion allocated to the transport sector. This includes MVR 4.4 billion for transport, comprising MVR 3.2 billion for airport development and MVR 870.3 million for bridge construction. PSIP expenditures in the health sector increased from MVR 145.5 million in the same period last year to MVR 453.1 million, an increase of MVR 307.7 million or 211.5 percent compared to the corresponding period in 2024.

Furthermore, the report highlights that the state budget deficit has narrowed to MVR 2.0 billion. This represents a reduction of MVR 9.5 billion, or 82.5 percent, compared to the MVR 11.5 billion deficit reported during the same period last year. The primary balance has improved to a surplus of MVR 2.5 billion, a notable advancement when compared to the MVR 6.9 billion primary deficit recorded in the corresponding period of the previous year.