According to the Weekly Fiscal Developments report published by the Ministry of Finance, state revenue has seen a significant increase, leading to the accelerated progress of Public Sector Investment Program (PSIP) projects. This growth is primarily attributed to a rise in Tourism Goods and Services Tax (TGST) collections. As of the 18th of this month, total state revenue and grants reached MVR 36.9 billion, representing an increase of MVR 3.8 billion—or 11.5%—compared to the same period in 2024. The report highlights that TGST was the leading contributor to this revenue growth. Total tax revenue amounted to MVR 27.5 billion, while non-tax revenue reached MVR 9.1 billion.
As of the 18th, total expenditures stood at MVR 38.9 billion. The increase in spending over the past week was mainly driven by debt servicing costs. Meanwhile, MVR 3.4 billion was spent on subsidies, which is a 5.3% decrease compared to the same period in 2024. A total of MVR 7.5 billion has been invested in PSIP projects, with the largest share—MVR 4.4 billion—allocated to the transport sector. This includes MVR 3.2 billion for airport development and MVR 870.3 million for bridge construction. Additionally, PSIP expenditure in the healthcare sector rose by MVR 307.7 million compared to last year, reaching a total of MVR 453.1 million.
The state budget deficit has narrowed to MVR 2.0 billion. This marks a substantial reduction of MVR 9.5 billion, or 82.5%, compared to the MVR 11.5 billion deficit reported during the same period last year.
