The Maldives has recorded a steady rise in state revenue, with figures showing a 6.9 percent increase as of late April 2025 compared to the same period last year, driven largely by the continued strength of the tourism industry and associated taxes.
According to the Ministry of Finance and Trade’s latest fiscal update, total state revenue by 2025 April 24 stood at MVR 12.4 billion (USD 804.2 million), up from MVR 11.6 billion (USD 752.3 million) in 2024. This increase is attributed to improvements in both tax and non-tax revenue streams, with the tourism sector playing a central role in driving fiscal growth.
Tax revenue reached MVR 9.5 billion, reflecting a moderate increase over the previous year’s figure of MVR 9.4 billion. Meanwhile, non-tax revenues saw more substantial growth, surging to MVR 2.8 billion from MVR 1.98 billion. Notably, revenue from the Green Tax—levied on tourism-related activities—nearly doubled year-on-year, rising from MVR 361.9 million to MVR 617.7 million, highlighting the growing influx of eco-conscious travelers and increased occupancy across resorts and guesthouses.
The Tourism Goods and Services Tax (TGST) remains the leading contributor to state income, with collections reaching MVR 3.8 billion, up from MVR 3.6 billion during the same period in 2024. Additional tourism-linked income sources, such as the airport service charge and the airport development fee, generated MVR 490.5 million and MVR 492.8 million, respectively—both showing steady increases.
On the expenditure front, government spending was recorded at MVR 10.5 billion this year, showing a decrease from MVR 13.2 billion last year. Of this, MVR 9.7 billion went towards recurrent expenses, while MVR 804.5 million was spent on capital investments. Salary, pension, and allowance-related spending totaled MVR 3.7 billion, while administrative expenses dropped to MVR 5.9 billion from the previous year’s MVR 6.5 billion.
The fiscal report also reflects a healthier financial position for the state, with a primary balance surplus of MVR 1.9 billion, reversing a deficit of MVR 1.6 billion from last year. Overall, the state budget currently shows a surplus of MVR 3.5 billion.
This upward trend in revenue, especially from the tourism sector, highlights the Maldives’ continued appeal to international visitors and reaffirms the nation’s strong economic reliance on sustainable tourism. With increased connectivity and expanding resort developments across the archipelago, the Maldives remains a top destination for travelers worldwide while strengthening its fiscal foundation.
advertisment
advertisment
