The Maldives has marked a significant fiscal achievement, shifting from a budget deficit of USD 103.76 million at this time last year to a surplus of USD 142.67 million as of 17 April. This turnaround highlights the government's determined efforts to rein in expenditure, which has been reduced by approximately USD 64.85 million compared to the previous year.
The Ministry of Finance and Planning, in its 'Weekly Fiscal Developments' report, revealed that total state revenue had reached USD 758.55 million by 17 April, an increase of USD 45.39 million over the same period last year. Withholding tax stood out as the most substantial contributor to state income.
Revenue growth was also driven by key streams such as the Tourism Goods and Services Tax (TGST), which generated USD 239.78 million, up from USD 220.37 million in the previous year. Green Tax revenue saw a notable rise, increasing to USD 37.13 million from USD 21.72 million. Collections from the Airport Development Fee followed a similar trajectory, totalling USD 29.35 million compared to USD 21.21 million last year.
Expenditure figures reflected a contrasting trend. The state reported spending USD 615.85 million during this period, a significant reduction from the USD 823.52 million recorded in the corresponding period last year. Salaries, allowances, and pensions accounted for USD 233.35 million, an increase from USD 213.99 million in the previous year. Administrative expenses totalled USD 337.13 million, down from USD 395.47 million. Capital expenditure experienced the sharpest decline, falling to USD 48.17 million from USD 207.46 million. Subsidies emerged as the largest expenditure during the most recent week covered by the report.
The finance ministry attributed the surplus to the government's strategic fiscal measures. In his presidential address, President Dr Mohamed Muizzu underscored the importance of abandoning the culture of overspending. He assured that the measures being implemented to ensure fiscal sustainability would not compromise efforts to enhance public services or delay development projects. The president also expressed confidence in the nation's trajectory towards long-term fiscal stability.