Maldives State Revenue Hits USD 1 Billion Driven by Tourism Growth

State revenues and grants reached USD 1 billion during the first four months of the year, marking a 7.5 percent increase over the USD 930 million collected during the same period last year, the Ministry of Finance and Public Enterprises reported. According to the ministry's latest Weekly Fiscal Developments report, this growth was primarily fueled by the tourism sector. The increase in revenue helped the government achieve a fiscal surplus of USD 64.86 million by the end of April. The Tourism Goods and Services Tax (TGST) continues to be the most significant contributor to the national treasury. Revenue from TGST climbed to USD 330.91 million, an 11.7 percent rise compared to the USD 298.18 million collected during the corresponding period in 2025. Overall tax revenues reached USD 797.66 million as of April 30, 2026, representing a 13 percent increase year-on-year. However, this revenue growth coincided with a rise in government spending. Total state expenditure reached USD 930 million, a 13.8 percent increase from the USD 817.01 million recorded in the previous year. Recurrent expenditure grew by 11.1 percent, largely driven by increased costs for state employee salaries and allowances. Spending on employee compensation alone totaled USD 291.86 million. The ministry attributed this spike to the implementation of a pay harmonisation policy designed to standardise wages across the public sector. In total, spending on salaries, wages, and pensions rose to USD 343.82 million, reflecting a 10.1 percent increase over the previous year.