The Maldives government recorded a budget surplus of more than MVR 118 million as state revenue and grants continued to rise during the first months of the year, according to the latest figures released by the Ministry of Finance and Public Enterprises.
The Ministry’s Weekly Fiscal Developments report showed that state revenue and grants reached MVR 16.8 billion by the 14th of this month, reflecting an increase of MVR 1.8 billion compared to the same period last year.
According to the report, the increase represents a growth of 12.2 percent over the MVR 14.9 billion collected during the corresponding period in 2025.
The Finance Ministry stated that higher tax collection was the primary factor behind the improved revenue performance.
Total tax revenue reached MVR 13.3 billion, marking a 17.1 percent increase compared to last year.
Among the strongest contributors was Corporate Income Tax, which generated MVR 2.7 billion in revenue. This represented a significant increase of 31.3 percent compared to the previous year.
Despite higher government spending during the same period, revenue growth allowed the state to maintain a surplus position.
According to the report, total expenditure stood at MVR 16.7 billion, reflecting a 22.4 percent increase compared to last year.
This included MVR 14.7 billion in recurrent expenditure and MVR 2 billion in capital expenditure.
As a result, the government recorded a fiscal surplus of approximately MVR 118.2 million.
The report also showed increases in state spending on salaries, allowances and subsidies.
Expenditure on salaries and employee benefits rose to MVR 5.3 billion, an increase of nearly MVR 477 million compared to the previous year.
The Ministry attributed the increase largely to the government’s ongoing salary harmonization programme across the civil service.
Out of the total, MVR 2.4 billion was spent on wages and salaries, while MVR 2.1 billion was allocated for employee allowances. Pension and retirement benefit payments reached MVR 773.5 million.
Meanwhile, debt servicing and interest payments amounted to MVR 2.1 billion during the period.
Subsidy expenditure also increased sharply to MVR 2.3 billion. According to the Finance Ministry, the rise was mainly linked to higher global fuel prices driven by ongoing conflicts in the Middle East.
Despite rising international fuel prices, the government has continued subsidy measures aimed at maintaining stable prices for essential goods and services in the Maldives.
The latest fiscal figures indicate that stronger tax collection, particularly from corporate income taxes, has helped reinforce the state’s financial position despite rising expenditure pressures linked to global economic conditions and domestic policy reforms.
