Maldivian Government Revenue Hits USD 1.09 Billion With 12.2 Percent Surge

The Maldivian government has recorded a significant increase in revenue during the current fiscal period, with total revenue and grants reaching USD 1.09 billion. This represents a 12.2 percent rise compared to the USD 966.4 million reported during the same period last year, according to the Ministry of Finance and Public Enterprises. In its Weekly Fiscal Development Report, dated 14 May, the Ministry highlighted that tax revenue remains the primary driver of government income. Tax collections rose by 17.1 percent to USD 862.8 million, fueled largely by a 31.3 percent spike in corporate income tax receipts. These receipts climbed to USD 175.1 million, an increase of USD 41.35 million over the previous year. Officials attribute this growth to stricter enforcement measures and improved tax compliance across the business sector. This revenue boost allowed the government to maintain a budget surplus of USD 7.66 million, as total income slightly exceeded total spending. However, overall expenditure also rose significantly, increasing by 22.4 percent to USD 1.08 billion. This include a 21.6 percent rise in recurrent spending to USD 953.3 million and a 28.8 percent jump in capital expenditure, which reached USD 129.7 million. A critical area of spending was subsidy expenditure, which surged by 77.8 percent to USD 149.2 million, up from USD 84.3 million last year. The Ministry linked this dramatic increase to volatile global oil prices triggered by geopolitical tensions in the Middle East. Despite the high cost, the government maintained that these subsidies are vital for economic stability. By absorbing the shock of international market fluctuations, the state has been able to protect households from sharp price hikes on basic goods and services. Meanwhile, debt repayment and interest expenses remained steady at USD 136.2 million for the period.