Maldives Accelerates PSIP Projects Amid Rising Revenue, Narrowing Fiscal Deficit

The Maldives has reported significant progress in its Public Sector Investment Program (PSIP) projects, driven by a surge in state revenue. According to the Ministry of Finance and Planning’s latest fiscal development report, total state revenue and grants reached USD 2.4 billion as of 18 December, marking an 11.5 percent increase compared to the same period last year. This growth was largely fueled by Tourism Goods and Services Tax (TGST) collections, which rose by 14.8 percent to USD 655 million. Overall tax revenue climbed to USD 1.8 billion, while non-tax income increased to USD 590.1 million. Despite higher expenditures, PSIP spending surged to USD 486.4 million, with transportation projects—including airport development and bridge construction—accounting for a significant portion. Health sector investments under PSIP also saw a notable rise. As a result, the fiscal deficit narrowed dramatically by 82.5 percent to USD 129.7 million, reflecting improved revenue performance and disciplined spending.