The Government has recorded a primary budget surplus of MVR 2.52 billion, marking a significant fiscal turnaround from the same period last year, when the primary balance stood at a deficit of MVR 6.93 billion.

According to the latest Weekly Fiscal Development Report released by the Ministry of Finance and Planning, cumulative revenue and grants for the period from 01 January to 18 December 2025 amounted to MVR 36.91 billion, compared to MVR 33.09 billion during the same period in 2024.

Tax revenues remained the dominant source of income, totalling MVR 27.46 billion. Goods and Services Tax continued to be the single largest contributor, generating MVR 15.16 billion, driven primarily by Tourism GST, which reached MVR 10.08 billion. General GST contributed MVR 5.08 billion during the period.

Non-tax revenues increased to MVR 9.14 billion, led by Fees and Charges amounting to MVR 4.08 billion. This included Airport Development Fees of MVR 1.78 billion, Expatriate Quota Fees of MVR 424.9 million, and other administrative fees and charges. Property income totalled MVR 2.44 billion, supported mainly by resort rents and land acquisition and conversion fees. Grants received during the period stood at MVR 301.5 million.

On the expenditure side, cumulative Government spending reached MVR 38.92 billion. Recurrent expenditure accounted for MVR 33.36 billion, while capital expenditure stood at MVR 5.56 billion.

Administrative and operational expenses remained the largest component of recurrent spending, totalling MVR 19.96 billion. Salaries, wages and pensions amounted to MVR 13.38 billion.

As a result, the overall fiscal balance for the period recorded a deficit of MVR 2.02 billion, a substantial improvement compared to the MVR 11.53 billion deficit recorded during the same period last year.

Among Government offices, the Ministry of Education recorded the highest level of expenditure, with utilisation of approximately MVR 3.60 billion. This was followed by the Ministry of Construction, Housing and Infrastructure, which recorded expenditure of MVR 3.57 billion, and the National Social Protection Agency, with spending of MVR 3.17 billion.

Transfers to the Sovereign Development Fund increased to MVR 2.50 billion, up from MVR 1.33 billion during the same period last year. This represents an increase of nearly 89 per cent, highlighting the Government’s continued focus on strengthening debt repayment capacity and enhancing long-term fiscal resilience.