The Ministry of Finance and Planning has reported a marked improvement in the nation’s fiscal position, crediting strong tourism revenues and government reforms for the gains.
In its latest report, the ministry confirmed that total revenue and grants rose by 10.6 percent to USD 2.32 billion through early December, compared with USD 2.09 billion during the same period in 2024. Expenditure restraint also proved effective, with total spending declining by 12.5 percent to USD 2.43 billion. The combined effect of higher income and reduced outlays produced a sharp contraction in the budget deficit, which fell by 84.1 percent, from USD 674.45 million last year to USD 110.25 million this year.
Tax receipts increased by 9.3 percent to USD 1.74 billion, driven largely by gains in the Goods and Services Tax. Tourism-related GST, which accounts for two-thirds of total collections, rose by 13.9 percent to USD 635.54 million, reflecting both sector expansion and a rate increase from 16 to 17 percent in July. General GST receipts also strengthened, climbing 8.2 percent to USD 324.25 million.
Non-tax revenue grew by 19.7 percent to USD 564.20 million, largely from higher property income. The government underscored its commitment to reinforcing reserves, with deposits into the Sovereign Development Fund rising by 87.9 percent to USD 155.64 million.