The Ministry of Finance has stated that the state’s total revenue and grants for the first six months of this year reached MVR 22.4 billion, driven by an increase in tax revenue, particularly Corporate Income Tax and the Goods and Services Tax (GST).

According to the Ministry of Finance's latest Weekly Fiscal Developments report, this year's revenue marks an increase of MVR 2.1 billion, or 10.4 percent, compared to the MVR 20.3 billion received during the same period in 2025.

The largest share of the state revenue was contributed by tax collections. In this regard, tax revenue increased from MVR 15.3 billion last year to MVR 17.3 billion this year, representing a growth of MVR 2.0 billion or 13.0 percent.

The report shows that a total of MVR 1.7 billion was collected as Corporate Income Tax, which is an increase of MVR 97.7 million, or 6.2 percent, compared to the corresponding period in 2025.

Furthermore, a total of MVR 9.6 billion was received as GST, marking an increase of MVR 835.4 million, or 9.6 percent, compared to the previous year. This includes MVR 2.9 billion collected as General GST and MVR 6.6 billion collected as Tourism Goods and Services Tax (TGST).

Regarding state expenditures, a total of MVR 23.4 billion was spent during this period of the year. Compared to the MVR 19.2 billion spent last year, this is an increase of MVR 4.2 billion, or 21.7 percent.

The primary driver for the increase in expenditure over the past week was the rise in spending on state employee salaries and allowances.

Additionally, it is noted that despite the rise in the global market prices of oil and other commodities due to the ongoing war in the Middle East, government spending on subsidies—aimed at maintaining the prices of essential goods and services—has also risen by MVR 1.4 billion so far this year.

While ongoing operational costs, or recurrent expenditure, stood at MVR 20.3 billion, capital expenditure for infrastructure and development projects increased to MVR 3.0 billion.

Despite the overall increase in expenses, the state recorded a primary surplus of MVR 1.7 billion.

However, once all financial expenditures are accounted for, the overall budget balance recorded a deficit of MVR 975.9 million.