Maldives State Revenue Rises 11.6 Percent Driven by Tourism Tax Growth

State revenue and grants in the Maldives have increased by 11.6 percent, reaching USD 882 million as of April 16, according to the latest Weekly Fiscal Development Report from the Ministry of Finance and Public Enterprises. This figure marks a notable rise from the USD 792 million recorded during the same period last year. Despite this growth, total government expenditure also climbed by 16.9 percent to USD 778 million, compared to USD 668 million last year. This leaves the state budget with a current surplus of USD 104 million. The growth in revenue was largely propelled by a 19.7 percent surge in tax income, which totaled USD 707 million. The Goods and Services Tax (GST) contributed USD 383 million to this total, with Tourism GST (TGST) emerging as the primary driver. TGST reached USD 279 million, a 17.5 percent increase over the previous year. Other tourism-linked revenue streams also showed positive trends, with green tax revenue rising to USD 49.8 million and departure taxes generating USD 42.1 million, underscoring the sector's critical role in the national economy. On the expenditure front, recurrent spending grew by 14.6 percent to USD 687 million. This includes USD 259 million allocated to salaries and pensions and USD 435 million for administrative and operational costs. The most significant increase in recurrent spending was seen in subsidies, which rose 36.2 percent to USD 90.8 million. Additionally, capital expenditure saw a sharp increase of 39.9 percent, totaling USD 84.3 million. The Finance Ministry also noted that the current report reflects a restructuring of government ministries and agencies. These updates follow institutional changes announced by the President’s Office on April 15, ensuring that financial accounts align with the current administrative structure of the government.