The Ministry of Finance and Treasury has stated that revenue has increased, and the deficit has been reduced, even with the implementation of projects and a pay harmonization policy. According to the Weekly Fiscal Developments Report published by the Ministry of Finance, the total revenue and grants received as of November 20th amounted to MVR 33.5 billion. This represents a 9.5% increase compared to the MVR 30.6 billion received during the same period last year. Total expenditures decreased by 12.6%, from MVR 40.1 billion in the same period last year to MVR 35.1 billion. As a result, the overall deficit for this period has been reduced from MVR 9.5 billion to MVR 1.5 billion, which is an approximate decrease of 84 percent.
Statistics show that tax revenue increased by 8.5 percent compared to last year, rising from MVR 23.3 billion in the corresponding period last year to MVR 25.2 billion. This increase is mainly due to a rise in GST. Total GST revenue increased by 12.0 percent, from MVR 12.2 billion to MVR 13.7 billion. Tax revenue accounted for 75.2 percent of the total revenue and grants, while non-tax revenue contributed 23.9 percent. As of November 20th, approximately 84 percent of the projected total revenue and grants for this year, which is MVR 39.8 billion, has so far been received by the state.
Regarding expenditures, the government is reducing overall expenditures and prioritizing essential services and projects. Recurrent expenditures increased slightly compared to last year, rising from MVR 29.2 billion to MVR 30 billion. Of this, expenses for salaries, wages, and pensions increased by 6.6 percent, from MVR 11.3 billion to MVR 12.1 billion. This increase is due to policies such as pay harmonization and efforts to strengthen the delivery of essential services. Capital expenditures decreased by 53.7 percent, from MVR 10.9 billion to MVR 5.0 billion. The Ministry of Finance stated that this aligns with the government’s policy of re-prioritizing and effectively streamlining major projects.
While an overall balance deficit was reported by the end of October, due to the government implementing significant development projects and the pay harmonization policy set to begin on November 1, 2025, the balance for the first 40 weeks of 2024 showed a surplus. As of November 20th, the overall balance stood at a deficit of MVR 1.5 billion, and the primary deficit showed a surplus of MVR 2.6 billion.
