The Ministry of Finance and Planning has reported a significant improvement in the government’s fiscal position, driven largely by increased revenue from the Tourism Goods and Services Tax (TGST).
According to official figures, total state revenue and grants reached USD 2.33 billion by the end of last week, representing a 10.5 per cent increase compared with USD 2.11 billion recorded during the same period last year.
Tax revenue played a central role in this growth. TGST collections rose to USD 642.02 million, marking a 14.1 per cent increase from the USD 564.20 million collected during the corresponding period in 2024. The rise in tourism-related income pushed total tax revenue to USD 1.74 billion, reflecting a 9.2 per cent year-on-year increase.
The ministry also reported a substantial reduction in the fiscal deficit, which narrowed by 82.5 per cent to USD 123.22 million, down from USD 700.39 million a year earlier. This improvement was supported by a 12.7 per cent decline in total state expenditure, which fell to USD 2.46 billion.
Despite the reduction in overall spending, capital investment remained a key priority. Expenditure under the Public Sector Investment Programme totalled USD 473.41 million, with the transport sector accounting for USD 285.34 million, largely directed towards airport development. Officials said efforts are continuing to streamline subsidies and manage capital costs more effectively.