Maldives Budget Surplus Hits $136M as Tax Revenue Rises, Spending Falls

The Maldives has achieved a significant budget surplus of USD 136.2 million for the period ending 19 March, a 140.7% increase from last year, driven by higher tax revenues and reduced government expenditure, according to the Ministry of Finance and Planning's Weekly Fiscal Developments Report. State revenue grew by 4.4% year-on-year to USD 609 million, while total spending fell by 10.3% to USD 473 million. Tax revenue, constituting 82% of total income at USD 499 million, was the key contributor, with Goods and Services Tax (GST) collections rising by 10.8% to USD 259 million. Tourism Sector GST accounted for USD 188.1 million of this, and General GST added USD 71 million. Business and property tax revenue surged by 24.8% to USD 142 million, with corporate income tax contributing USD 77 million and green tax revenue reaching USD 32 million. On the expenditure side, recurrent spending dropped by 10.5% and capital spending declined by 7.8%, though public sector salaries and allowances increased by 3% to USD 175 million due to a harmonization policy introduced in November 2025. The improved fiscal position has enabled an 8.6% rise in contributions to the Sovereign Development Fund (SDF) and an 18% increase in block grants for local councils, supporting national development and decentralized governance. This trend reflects the Maldives' strengthening economic resilience, bolstered by tourism-driven tax inflows and disciplined fiscal management.