The Ministry of Finance and Public Enterprises has reported a budget surplus of MVR 118.2 million so far this year, supported by higher revenue collection despite a significant increase in Government expenditure.

In its latest Weekly Fiscal Development report, the Ministry stated that total State revenue and grants reached MVR 16.78 billion as of 14 May 2026, compared to MVR 14.95 billion during the same period last year, reflecting a 12.2 per cent increase.

The growth in revenue was primarily driven by tax income, which rose from MVR 11.36 billion in the corresponding period of 2025 to MVR 13.30 billion this year.

Government expenditure also increased during the period. Total spending stood at MVR 16.66 billion as of 14 May, up from MVR 13.60 billion recorded during the same period last year, marking a 22.4 per cent increase.

Recurrent expenditure, which covers day-to-day Government operations, increased from MVR 12.07 billion last year to MVR 14.68 billion this year. Capital expenditure also rose, climbing from MVR 1.53 billion in the same period of 2025 to MVR 1.97 billion this year.

During the period, subsidy expenditure increased by 77.8 per cent to MVR 2.3 billion amid tensions in the Middle East, as the Government moved to cushion the impact of rising fuel prices on the public.

The report stated that the primary budget surplus stood at MVR 2.18 billion. However, after accounting for MVR 2.06 billion in financing and interest costs, the overall budget surplus narrowed to MVR 118.2 million.

During the same period last year, the overall budget surplus stood at MVR 1.35 billion.

Transfers to the Sovereign Development Fund (SDF) also increased, reaching MVR 923.3 million compared to MVR 776 million in the corresponding period last year.

The update comes as the Government repaid a total of USD 974 million in debt obligations over the past two months, including sukuk repayments, swap arrangements and loans.