Maldives State Revenue Reaches MVR 33.36 Billion by October 2024

According to the latest Weekly Fiscal Developments Report released by the Ministry of Finance and Public Enterprises, the total income and grants received by the state reached MVR 33.36 billion by the end of October 22 this year. This represents a 5.6 percent increase compared to the MVR 31.60 billion received during the same period in 2023. The main driver of this increase is a 9.8 percent rise in tax collections, which grew from MVR 23.44 billion to MVR 25.73 billion. Among these, the Tourist Goods and Services Tax (TGST) contributed MVR 8.87 billion, a 5.7 percent increase, while Green Tax revenue rose 2.6 percent to MVR 1.78 billion. Business and property tax revenues increased by 21.8 percent to MVR 5.97 billion, import duty revenues rose 11.0 percent to MVR 2.82 billion, and General Sales Tax (GST) brought in MVR 4.46 billion. Non-tax revenues, however, decreased by 9.5 percent despite growth in resort leases and airport development fees. State expenditure also rose significantly, increasing by 17.0 percent to MVR 37.21 billion. This includes MVR 32.00 billion in recurrent or operating costs and MVR 5.21 billion in capital expenditure. Grants to councils increased by 15.9 percent to MVR 2.08 billion. The largest expenditure increase was on subsidies, which rose 58.6 percent to MVR 4.31 billion, driven by rising oil prices linked to Middle East tensions. Health insurance under Aasandha amounted to MVR 1.94 billion, while employee salaries and pensions reached MVR 12.05 billion. Capital spending on land reclamation and land maintenance projects increased by 89.7 percent, and construction and land-related expenses totalled MVR 1.69 billion. Although the state recorded a primary surplus of MVR 0.27 billion, the overall fiscal balance remains in deficit at MVR 3.85 billion.