Robust performance in tourism-related taxes and airport development fees has helped drive the Republic of Maldives’ total government revenue and grants past the USD 1 billion mark in just the first 19 weeks of 2025, according to the latest figures published by the Ministry of Finance and Planning.
The Weekly Fiscal Development Report released by the Ministry indicates that from January 1 to May 29 this year, the government collected a total of USD 1.063 billion in revenue and grants, reflecting a 7.6 percent increase compared to the same period last year. This surge highlights steady economic momentum and continued resilience in the country’s key economic sectors, particularly tourism.
Of the total revenue collected, USD 843 million was generated from tax-related income, while USD 220.5 million came from non-tax revenue sources. The increase in total receipts was largely influenced by a rise in tax collections from the Goods and Services Tax (GST), Tourism GST (TGST), and the green tax, which collectively saw a 14.8 percent year-on-year increase. This uptick is attributed to recent adjustments in tax rates, as well as growing economic activity.
Significantly, revenue from the airport development fee recorded a sharp 49.8 percent rise over the same period last year. This growth corresponds with an 8.3 percent increase in international tourist arrivals, underscoring the continuing expansion of Maldives’ tourism sector and its direct contribution to public finances.
The strong revenue performance also contributed to higher savings in the Sovereign Development Fund, with deposits increasing by 47.1 percent compared to the corresponding period in 2024. The Fund plays a vital role in safeguarding the nation’s fiscal stability and financing long-term development projects.
On the expenditure side, the government spent a total of USD 992.2 million by May 29, representing a 16.3 percent reduction from the previous year. Recurrent expenditure declined modestly by 2 percent, while capital expenditure saw a more pronounced drop of over 65 percent, suggesting a strategic effort to optimize public spending and reallocate resources efficiently.
As of the end of May, the government has already secured 41.6 percent of the total revenue and grants projected in the 2025 State Budget. Meanwhile, total expenditure has reached 31.1 percent of the annual budgeted figure.
The fiscal update signals improved economic management and a more sustainable revenue outlook, largely supported by the thriving tourism industry. As tourist arrivals continue to grow, the Maldives is well-positioned to maintain fiscal health while advancing national development priorities.
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