The government collected MVR 22.4 billion in revenue and grants during the first six months of the year, an increase of 10.4 percent compared with the same period in 2025, according to the Ministry of Finance.

The ministry's latest Weekly Fiscal Developments Report shows revenue increased by MVR 2.1 billion, with tax receipts accounting for the largest share. Tax revenue rose 13 percent to MVR 17.3 billion.

Goods and Services Tax (GST) generated MVR 9.6 billion, up 9.6 percent year-on-year, while Corporate Income Tax reached MVR 1.7 billion, a 6.2 percent increase.

Government expenditure totalled MVR 23.4 billion during the period, up 21.7 percent from a year earlier. The increase was mainly driven by higher spending on salaries, allowances and pensions.

The report also noted that MVR 1.4 billion was spent on subsidies to help maintain the prices of essential goods and services.

Despite higher expenditure, the government recorded a primary surplus of MVR 1.7 billion. However, after accounting for all expenses, including debt servicing, the overall budget recorded a deficit of MVR 975.9 million.