State revenue and grants rose to MVR 15.4 billion during the first four months of the year, marking a 7.5 per cent increase compared to the same period in 2025, according to the Ministry of Finance and Public Enterprises.

The figures, published in the ministry’s latest Weekly Fiscal Developments report, show that continued growth in the tourism sector contributed to a fiscal surplus of MVR 1 billion by the end of April.

Tourism Goods and Services Tax (TGST) remained the largest contributor to revenue growth, generating MVR 5.1 billion, an 11.7 per cent increase compared to MVR 4.6 billion recorded during the same period last year.

Total tax revenue stood at MVR 12.3 billion as of April 30, reflecting a 13 per cent increase year-on-year.

Government expenditure also rose during the period, reaching MVR 14.3 billion, up 13.8 per cent from MVR 12.6 billion recorded in the corresponding period of 2025.

Recurrent expenditure was recorded at MVR 12.6, marking an increase of 11.1 per cent, largely driven by higher spending on salaries and allowances for public sector employees. Spending on employee salaries and benefits reached MVR 4.5 billion, a 10.5 per cent rise compared to 2025.

Overall expenditure on salaries, wages, and pensions rose to MVR 5.3 billion, marking a 10.1 per cent increase compared to the previous year.