The Ministry of Finance has announced a significant improvement in the state’s financial situation, primarily attributed to increased revenue from Goods and Services Tax (GST) collected on tourism sector products and services, as well as fees from land sales and transfers. According to the Ministry’s ‘Weekly Fiscal Development Report’ published last week, the total revenue collected by the state amounted to MVR 35 billion by November 27th of this year. This marks a 9.4 percent increase compared to the same period last year. Tax revenue has risen to MVR 26 billion, with GST being the largest contributor. GST collections reached MVR 14.4 billion, representing a 12.4 percent increase.
Non-tax revenue also saw a notable increase, reaching MVR 8.6 billion. Revenue from land sales and transfer fees grew by 27.7 percent, totaling MVR 558.3 million. Furthermore, contributions to the Sovereign Development Fund (SDF) surged by 84.6 percent, reaching MVR 2.4 billion. This significant increase in the SDF demonstrates strengthened foreign currency liquidity for the state and enhances its capacity to meet future debt obligations.
Compared to the previous year, the state’s overall deficit has significantly narrowed. The total budget balance improved from a deficit of MVR 10.2 billion last year to MVR 1.4 billion. Concurrently, the primary balance shifted from a deficit of MVR 5.9 billion to a surplus of MVR 2.8 billion. The Ministry of Finance attributes these positive developments to a robust revenue performance and effective expenditure control.
As of last week, the state’s total expenditure was also lower compared to the same period last year, decreasing by 13.2 percent from MVR 42.0 billion to MVR 36.4 billion. These indicators collectively demonstrate the government’s successful progress in strengthening the financial sector, implementing salary and service reforms, and investing in national development initiatives.
