According to statistics released by the Ministry of Finance, state revenue and grants have recorded a 9.3% increase compared to the same period last year, totaling MVR 26.5 billion. This growth is primarily driven by an uptick in tax revenues, particularly from Goods and Services Tax (GST) and Corporate Income Tax. Additionally, the amount received in the form of grants has more than doubled.
On the expenditure side, both recurrent and capital spending have seen an increase. While there has been a rise in outlays for salaries, subsidies, and the national health insurance scheme (Aasandha), spending on infrastructure development projects has also climbed. Furthermore, the government is prioritizing the settlement of external loans. Consequently, debt servicing costs have surged by 146% compared to the previous year, with a significant portion allocated towards Sukuk repayments. Currently, the state fiscal balance reflects a deficit of MVR 792.8 million.
