The government recorded a fiscal surplus of MVR 1.04 billion by the end of April, although the latest figures show that public spending grew faster than revenue during the first four months of the year.
According to the Ministry of Finance and Public Enterprises’ Week 17 Weekly Fiscal Developments report, covering figures as at 30 April 2026, total revenue and grants reached MVR 15.38 billion, compared with MVR 14.30 billion during the same period last year. Total expenditure stood at MVR 14.34 billion, up from MVR 12.60 billion a year earlier.
The figures point to a narrower overall surplus than last year. By the end of April 2025, the government had recorded a surplus of MVR 1.70 billion. This year’s surplus was lower by about MVR 662.5 million, reflecting the pressure of rising expenditure despite stronger tax collections.
Revenue growth was largely supported by tax receipts, which rose to MVR 12.31 billion from MVR 10.89 billion last year. Goods and Services Tax remained the largest contributor, with total GST collections reaching MVR 7.05 billion. Tourism GST accounted for MVR 5.12 billion of that amount, reflecting the continued importance of the tourism sector to the state’s revenue base.
Business and property taxes also increased, rising to MVR 2.53 billion from MVR 1.96 billion last year. Green Tax collections reached MVR 895.2 million, while Airport Service Charges and Departure Tax stood at MVR 750.3 million.
Non-tax revenue, however, declined to MVR 2.97 billion from MVR 3.33 billion a year earlier. The fall was mainly linked to lower fees and charges, which dropped sharply from MVR 1.74 billion to MVR 1.27 billion. SOE dividends also declined, falling to MVR 164 million from MVR 244 million last year.
On the expenditure side, recurrent spending continued to dominate the budget. Recurrent expenditure reached MVR 12.64 billion, compared with capital expenditure of MVR 1.70 billion. This means that about 88 percent of recorded expenditure during the period went towards recurrent costs, while capital spending accounted for 12 percent.
Salaries, wages and pensions rose to MVR 5.31 billion, up from MVR 4.82 billion last year. Administrative and operational expenses also increased to MVR 7.33 billion, while grants, contributions and subsidies reached MVR 3.96 billion.
Capital expenditure increased from MVR 1.23 billion to MVR 1.70 billion, with higher spending on land and buildings, infrastructure assets, and public sector investment projects. Public Sector Investment Programme spending stood at MVR 1.73 billion, only slightly higher than the MVR 1.58 billion recorded during the same period last year.
The report also shows a sharp rise in loan repayments. Loan repayment reached MVR 8.62 billion by the end of April, compared with MVR 2.51 billion during the same period last year. While loan repayments are not counted as recurrent or capital expenditure in the main expenditure total, the increase points to the continued fiscal pressure created by debt servicing obligations.
Government securities outstanding stood at MVR 95.73 billion as of 20 April 2026. Domestic instruments accounted for most of this total, at MVR 94.19 billion, while external instruments stood at MVR 1.54 billion.
The latest figures suggest that the government remains in surplus on paper, supported mainly by tax revenue from tourism and business activity. However, the narrowing surplus, higher recurrent costs, and large debt repayments show that fiscal space remains limited, particularly as the state continues to balance day-to-day spending with infrastructure needs and debt obligations.
