The state has received most of its revenue estimates for this year, according to the Ministry of Finance and Planning.
In its Weekly Fiscal Development Report, the Ministry stated that the government has received USD 1.71 billion in revenue and grants so far this year, an 8.0 percent increase compared to the same period last year, when USD 1.58 billion was collected. The government has received 66 percent of the revenue expected for the year.
Taxes accounted for 78 percent of the state’s revenue this year, with tax revenue reaching USD 1.33 billion, up from USD 1.24 billion during the same period last year. The Ministry noted that changes in tax rates led to a 104.6 percent increase in green tax revenue compared to the previous year. Departure tax revenue rose by 57.9 percent while personal income tax increased by 17.3 percent over the previous year.
Non-tax revenue totalled USD 357 million so far this year. Non-tax revenue from airport development fees increased by 56.8 percent, primarily due to the number of tourists visiting the Maldives so far this year increasing by 9.7 percent compared to the same period last year. Land acquisition and conversion fees, lease period extension fees and resort rental income also increased during this period.
The Ministry also revealed that the deposits to the Sovereign Development Fund (SDF) rose by 47.9 percent, reaching USD 91 million.
While revenue has improved, overall government spending has been reduced this year. According to the latest statistics, USD 1.65 billion has been utilised from the state budget, a 15.5 percent decrease compared to the same period last year. The reduction is largely due to a 57.7 percent decline in capital expenditure.
Recurrent expenditure reached USD 1.43 billion, with 56.7 percent spent on administrative expenses of government offices, down 4.5 percent from the same period last year. Capital expenditure stood at USD 214 million, of which USD 188 million was allocated to road construction, bridges and airport development.
The government is taking important steps to reduce expenditure while continuing efforts to increase revenue.