Robust inflows from tourism-related levies, led by TGST and airport service charges, pushed total state revenue and grants to MVR 30.88 billion by the first of this month, reflecting a 1.8 percent year-on-year increase according to the Ministry of Finance's latest Weekly Fiscal Developments report.
Tax revenues served as the primary driver of earnings, climbing 5.8 percent from MVR 22.53 billion in the corresponding period last year to MVR 23.84 billion. Tourism Goods and Services Tax (TGST) accounted for the lion's share of tax receipts, generating MVR 8.06 billion. Concurrently, combined collections from Airport Service Charge and Departure Tax expanded by 8.2 percent to hit MVR 1.53 billion. Non-tax income also saw healthy gains, with Airport Development Fees contributing MVR 1.55 billion (an 8.1 percent increase), property-related receipts rising 13.5 percent to MVR 1.948 billion, and external grants surging 84.7 percent to MVR 0.513 billion. Other revenue streams, including business and property taxes (MVR 5.78 billion), import duties (MVR 2.51 billion), and general GST (MVR 4.13 billion), further reinforced state coffers.
Despite the revenue expansion, state expenditure accelerated at a significantly steeper rate, surging 18.2 percent to reach MVR 35.456 billion. Recurrent expenditure accounted for MVR 30.653 billion of the total spend, marked by substantial outlays on subsidies (up 75.1 percent to MVR 4.203 billion), civil servant salaries and allowances (up 14.1 percent to MVR 5.555 billion), and the Aasandha national healthcare scheme (up 25.1 percent to MVR 1.864 billion).
Capital expenditure likewise saw an uptick of 15.9 percent, totaling MVR 4.804 billion. The bulk of capital funding was absorbed by major infrastructure initiatives, with MVR 1.453 billion allocated to land reclamation and building projects, alongside MVR 0.333 billion spent on harbor development across the country.