Government revenue increased by nearly 30 percent during the first two months of the year, according to the latest fiscal statistics released by the Ministry of Finance.
The ministry’s weekly fiscal report shows that as of February 26, the state had received a total of MVR 7.8 billion in revenue and grants, while total expenditure stood at MVR 5.9 billion.
The figures mark a significant improvement compared with the same period last year. During the first two months of 2025, government revenue stood at approximately MVR 6 billion. This year’s total represents a 29.3 percent increase, with tax revenue accounting for around 83 percent of the total income.
Tourism Goods and Services Tax (TGST) recorded the highest growth among tax categories. Collections from TGST reached MVR 2.3 billion during the period, reflecting a 39.4 percent increase compared with the same period last year.
Overall Goods and Services Tax (GST) collections stood at MVR 3.2 billion, representing a 32.1 percent rise. Meanwhile, revenue from business and property-related taxes amounted to MVR 2.2 billion.
On the expenditure side, total government spending remained relatively stable compared with last year. However, expenditure on employee salaries and allowances rose by 9.6 percent.
During the two-month period, the state spent MVR 2.64 billion on salaries and pensions. Officials said the increase partly reflects adjustments under the government’s pay harmonisation policy.
With revenue growing faster than spending, the fiscal balance has improved significantly. The government recorded a surplus of MVR 1.9 billion during the period, compared with a surplus of MVR 98.2 million in the same period last year.
Deposits into the Sovereign Development Fund also increased slightly, rising by 2.5 percent to reach MVR 287.1 million.
Foreign exchange inflows during the period totalled USD 222.8 million, according to the report.
The Finance Ministry noted that this was the first fiscal report published since the beginning of the year. Officials said that delays in reconciling financial accounts are common at the start of each fiscal year and added that this year’s report was also affected by changes made to the structure of the government’s accounting system.
