The Maldives collected USD 1.99 billion in revenue and grants during the first nine months of the current fiscal year, according to the Ministry of Finance and Public Enterprises. The latest Weekly Fiscal Developments Report recorded a 1.8 per cent increase from the USD 1.96 billion reported during the corresponding period last year, supported primarily by stronger tax collections.
Tax revenue rose by 5.8 per cent to USD 1.54 billion, reinforcing its central role in financing public services and national development. Growth across several revenue categories helped support the overall increase, although performance varied between individual sources.
Tourism Goods and Services Tax (TGST) generated USD 518.8 million, underscoring tourism’s continuing importance to Government revenue. While collections were down marginally by 1.4 per cent year on year, TGST remained the highest-performing revenue stream on a weekly basis.
Revenue from business and goods taxes increased by 21.2 per cent to USD 369.6 million, while import duties rose by 11.4 per cent to USD 162.1 million. Airport service charges and departure taxes also recorded growth, increasing by 8.2 per cent to more than USD 97 million.
These gains provided support to public finances during the reporting period. However, expenditure increased considerably faster than revenue, highlighting the importance of managing spending alongside efforts to strengthen collections.
Total state expenditure reached USD 2.29 billion, an increase of 18.2 per cent compared with the same period last year. A major contributor was spending on grants, subsidies and social assistance, which rose by 44.3 per cent to USD 654.9 million.
Administrative and operational expenditure increased by 23.8 per cent to USD 1.19 billion. Together, the figures show the scale of resources being directed towards Government operations and support programmes, while placing expenditure management firmly within the fiscal outlook.
Alongside these commitments, the Government continued investment in infrastructure. Capital expenditure grew by 15.9 per cent to USD 311.2 million, maintaining funding for development projects despite higher operational spending.
Investment in land and building construction increased by 34.1 per cent to USD 94.23 million. Expenditure on harbour construction rose by 38.4 per cent, while spending on other infrastructure facilities increased by 37.5 per cent, reflecting continued attention to physical development and connectivity.
For an island nation, harbour and infrastructure investment can support the movement of people and goods and provide facilities needed for community and business activity. The increases demonstrate the continued allocation of resources to development alongside public services and social support.
The report presents a mixed fiscal picture: revenue and tax collections strengthened, while expenditure grew at a substantially faster pace. Sustaining revenue performance, closely managing operational costs and ensuring effective delivery of capital projects will remain important to balancing the Maldives’ development priorities with its public financing needs.
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