The Maldives remained in fiscal surplus by mid-March, with stronger tax receipts more than offsetting weaker non-tax revenue and slower spending, according to the latest Weekly Fiscal Developments report.
As of 19 March 2026, cumulative revenue and grants stood at MVR 9.38 billion, while cumulative expenditure reached MVR 7.27 billion. That left an overall surplus of MVR 2.10 billion for the year so far, a marked improvement from the MVR 873.7 million surplus recorded at the same point in 2025.
The stronger position was driven largely by tax revenue, which rose to MVR 7.73 billion from MVR 6.85 billion a year earlier. Goods and Services Tax remained the biggest contributor, with total GST collections reaching MVR 4.00 billion. Of that, Tourism GST accounted for MVR 2.86 billion, while General GST brought in MVR 1.14 billion. Business and Property Tax also showed a notable increase, rising to MVR 2.21 billion.
That improvement in tax receipts helped compensate for a decline in non-tax revenue, which fell to MVR 1.60 billion from MVR 2.07 billion in the same period last year. The drop was particularly visible in fees and charges, though some lines under property income were stronger, including land acquisition and conversion fees.
On the spending side, total expenditure was lower than a year ago, falling from MVR 8.11 billion to MVR 7.27 billion. Recurrent spending made up the bulk of expenditure at MVR 6.61 billion, while capital spending stood at MVR 665.2 million.
One of the more striking shifts in the report is the slowdown in capital expenditure and public investment. Spending under the Public Sector Investment Program stood at MVR 695.4 million, down from MVR 857.7 million in the same period of 2025. Transport infrastructure, usually one of the largest components of capital spending, dropped sharply from MVR 530.5 million to MVR 182.0 million. Environmental protection and housing-related spending also recorded lower disbursements.
This suggests that the early fiscal surplus is not only a story of stronger collections, but also of restrained spending, particularly on projects. In other words, the government’s balance has improved partly because revenue is coming in more strongly, but also because capital outlays have moved more slowly than they did at the same stage last year.
Within recurrent expenditure, salaries, wages and pensions increased modestly to MVR 2.73 billion. Administrative and operational expenses, however, fell to MVR 3.88 billion from MVR 4.74 billion a year earlier. Financing and interest costs also dropped sharply to MVR 577.7 million from MVR 1.45 billion, easing pressure on the budget in the early months of the year.
Some spending categories did rise. Other grants and contributions increased to MVR 618.2 million, while council block grant disbursements reached MVR 633.7 million. Health-related allocations were also higher for several agencies, including the Ministry of Health and Indira Gandhi Memorial Hospital, reflecting where budget use has been more active so far this year.
At the institutional level, the largest budget utilisation remained concentrated in the Special Budget, the Ministry of Education, the National Social Protection Agency, Maldives Police Service, the Ministry of Health, and the Maldives National Defence Force. Even so, several agencies tied to infrastructure and development recorded lower utilisation compared with the same point last year.
Taken together, the figures point to an early-year fiscal position that looks healthier on paper than in 2025, but with an important caveat. The surplus has been supported by robust tax inflows, especially from consumption and tourism-linked taxes, alongside a slower pace of expenditure. Whether that trend holds in the months ahead will depend not just on revenue performance, but on whether project spending begins to accelerate.
