The government has reported a significant increase in revenue and grants, reaching USD 1.8 billion as of 18 September, a 6.3 percent surge compared to the same period last year.
This positive fiscal development, detailed in the latest Weekly Fiscal Development Report from the Ministry of Finance and Planning, is largely attributed to robust tax collections and a surge in tourism.
Taxes formed the backbone of this revenue growth, accounting for USD 1.4 billion or 76.5 percent of the total revenue so far this year as several tax categories have seen notable increases. Following adjustments in tax rates, green tax revenue has more than doubled, experiencing a remarkable 102.4 percent increase. Departure tax revenue also saw a substantial rise of 51.1 percent, while personal income tax collections climbed by 15.7 percent.
Beyond direct taxes, non-tax revenue streams have also contributed significantly as extensions paid for resort development have boosted tax and non-tax revenue by 13.7 percent. In addition, revenue from airport development fees has surged by 56.6 percent, a direct reflection of the burgeoning tourism sector. Maldives has welcomed over 1.6 million tourists this year, marking a 9.6 percent increase in arrivals compared to the corresponding period the previous year.
Additional revenue streams, including land acquisition and conversion fees, lease period extension fees, and rental income from resorts, have also shown positive growth. This combined uplift has led to the overall 6.3 percent increase in total revenue and grants.
In parallel with the revenue growth, the Sovereign Development Fund has also seen a substantial increase, with deposits rising by 49.8 percent to USD 97.3 million. Cumulatively, the government has now secured 68.8 percent of the total revenue and grants estimated for the current year in the state budget approved by Parliament, indicating a strong performance against fiscal targets.