Government revenue has continued to grow steadily this year, with total revenue and grants reaching MVR 33.2 billion as of 13 November 2025, according to the Weekly Fiscal Development Report issued by the Ministry of Finance and Planning. This represents a 9.9 per cent increase compared to the MVR 30.3 billion collected during the same period last year.

The Ministry reported that tax revenue rose by 7.7 per cent to MVR 24.8 billion, driven primarily by growth in the Tourism Goods and Services Tax (TGST), which increased by 13.7 per cent to MVR 8.9 billion. General GST collections also rose by 7.4 per cent, reaching MVR 4.56 billion, while Green Tax receipts saw a substantial increase of 108 per cent, totalling MVR 1.9 billion. Airport Service Charge and Departure Tax collections grew by 60.2 per cent, recording MVR 1.5 billion.

Non-tax revenues likewise increased, climbing 22.1 per cent to MVR 8.2 billion. Notably, income from fees and services rose 60.3 per cent, with the Airport Development Fee contributing MVR 1.6 billion, up 60.4 per cent from the previous year.

On the expenditure side, Government spending stood at MVR 34.1 billion, reflecting a 13.5 per cent decline compared to the MVR 39.4 billion spent during the same period in 2024. According to the Ministry, reductions in advertising, subsidies and financing costs contributed to the drop, supported by lower global fuel prices. Financing and interest payments fell by 5.7 per cent to MVR 4 billion. Capital expenditure declined sharply by 53.9 per cent, amounting to MVR 4.9 billion, largely due to stricter cost controls and the introduction of contract-financing policies.

Public Sector Investment Programme (PSIP) spending reached MVR 6.9 billion, a 25.6 per cent reduction from last year’s MVR 9.3 billion. The largest share of PSIP expenditure, MVR 4.3 billion, was directed to the transport sector, including investments in airports, bridges and harbour construction.

The Ministry noted that the overall budget deficit has narrowed significantly to MVR 807.3 million, compared to the MVR 9.1 billion deficit recorded during the same period in 2024, a reduction of 91.1 per cent. The improvement is attributed to increased revenues and tighter spending controls. Despite the remaining deficit, the primary balance registered a surplus of MVR 3.2 billion.

As part of the Government’s effort to reduce pressure on the national budget, 206 agreements have been signed with 53 private companies as of 6 November 2025 to implement development projects under contractor-financing arrangements. These agreements allow private developers to fund and execute projects in nine key sectors, reducing direct budgetary expenditure.

The report also notes the introduction of the salary harmonisation policy, which came into effect in November 2025. The framework aims to establish an equitable public-sector pay structure while improving expenditure management and strengthening capital planning.