Higher collections from Tourism Goods and Services Tax (TGST) have helped drive a notable increase in Government revenue this year, according to the latest Weekly Fiscal Developments report published by the Ministry of Finance and Public Enterprises.

The report showed that total Government revenue and grants reached MVR 19.1 billion as of 4 June 2026, compared with MVR 17.3 billion recorded during the same period last year. This reflects an increase of MVR 1.8 billion, equivalent to 10.1 per cent.

Tax revenue continued to account for the largest share of State income. Collections from various taxes amounted to MVR 14.8 billion by early June, up from MVR 13.2 billion during the corresponding period in 2025. The increase of 12.4 per cent meant that tax receipts represented 78 per cent of the Government's total revenue.

The Ministry attributed much of this growth to stronger TGST performance. Revenue generated through TGST climbed to MVR 6.0 billion, compared with MVR 5.6 billion during the same period last year, marking a 7.6 per cent increase.

Revenue from General Goods and Services Tax (GST) also recorded growth, rising from MVR 2.2 billion in 2025 to MVR 2.5 billion this year.

Meanwhile, Government expenditure outpaced revenue growth during the period. Total recurrent and capital spending stood at MVR 19.2 billion as of 4 June, representing a 17.6 per cent increase compared with the same point last year.

Infrastructure development remained a major area of expenditure, with projects involving roads, bridges and airports accounting for a substantial share of capital spending. According to the report, MVR 818.6 million had been allocated to such projects so far this year.

The report also highlighted a sharp rise in subsidy-related spending. In addition to ongoing Public Sector Investment Programme (PSIP) projects, the Government has faced increased costs associated with maintaining subsidies amid higher global oil prices linked to conflicts in the Middle East.

As a result, subsidy expenditure rose to MVR 2.3 billion by 4 June 2026, compared with MVR 1.3 billion during the same period last year.