Finance Ministry Reports Fiscal Surplus in Early 2024

The Maldives government has reported a fiscal surplus of MVR 15.7 million for the first two months of 2024, indicating positive financial trends. This information comes from the Ministry of Finance’s latest weekly fiscal report.

Strong Revenue Performance

Total government revenue reached MVR 6.5 billion as of February, marking a robust start to the year. This figure comprises MVR 5.6 billion in tax revenue, MVR 817 million in non-tax revenue, and MVR 26.3 million in foreign aid.

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Import duties, Business Profit Tax (BPT), Goods and Services Tax (GST), Green Tax, and airport charges contributed significantly to tax revenues:

  • Import Duties: MVR 467.9 million
  • BPT: MVR 1.9 billion
  • GST: MVR 2.8 billion
  • Green Tax: MVR 191.7 million
  • Airport Charges: MVR 180.9 million

Controlled Expenditure

Expenditure for the same period stood at MVR 6.4 billion, a notable decrease compared to the MVR 8.2 billion spent in the same period last year. This reduced spending is a positive sign of fiscal discipline.

Recurrent expenditure accounted for MVR 5.2 billion, including MVR 2.1 billion for salaries and allowances and MVR 3 billion for administrative costs. Capital expenditure, primarily focused on infrastructure development, totalled MVR 1.2 billion.

Implications and Outlook

The early fiscal surplus suggests a healthy financial position for the Maldives government. This positive trend could enable increased investment in public services and infrastructure projects, contributing to economic growth and development. Continued focus on prudent fiscal management will be crucial to sustaining this trajectory.

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