Maldives State Revenue and Grants Rise 9.3 Percent to USD 1.72 Billion

Maldives State Revenue and Grants Rise 9.3 Percent to USD 1.72 Billion

World ·
State revenue and grants in the Maldives have increased by 9.3 percent, reaching USD 1.72 billion compared to the same period last year, according to the latest data from the Ministry of Finance and Public Enterprises. The growth was primarily driven by a 10.1 percent surge in tax collections. Goods and Services Tax (GST) saw a notable increase of 10.4 percent, while Tourism GST (TGST) rose by 4.7 percent. Corporate income tax also contributed to the growth, increasing by 1.4 percent over the previous year. Other key revenue streams showed significant gains. Import duty revenue climbed by 13.2 percent, and non-resident withholding tax jumped by 25.8 percent. Additionally, Airport Service Charge and Departure Tax revenue increased by 14.9 percent, reflecting a recovery in travel and logistics. Green Tax revenue also grew by 4.0 percent. Non-tax revenue reached USD 356.68 million, marking a 2.6 percent increase. This was bolstered by a 33.1 percent rise in asset revenue and a 17 percent increase in dividends from state-owned enterprises. Grants to the government saw the most dramatic leap, rising by 105.6 percent to USD 29.49 million. However, this revenue growth was offset by a substantial increase in government spending. Recurrent expenditure rose by 20.2 percent, fueled by higher costs for government operations, salaries, and pensions. Notably, subsidy spending spiked by 75.7 percent, while Aasandha—the national health insurance scheme—expenditure increased by 17.2 percent. The most significant spending pressure came from debt servicing. Debt repayments surged by 146 percent, totaling USD 622.57 million as of August 6, with the majority of funds directed toward sukuk repayments. Capital expenditure also grew by 7 percent, with investments focused on bridges, ports, and other critical infrastructure. Despite the upward trend in total revenue and grants, the government continues to record an overall fiscal deficit, although the primary balance remains in surplus.