State revenue up 29% at MVR 7.8 billion

State revenue was up by 29 percent during the first two months of this year compared to the same period last year, according to the latest data available from the Finance Ministry.

According to the latest weekly fiscal developments report released by the Finance Ministry, the state spent MVR 5.9 billion, and generated MVR 7.8 billion in revenue and grants, including USD 222.8 million, as of February 26.

The MVR 7.8 billion in revenue and grants marks a 29 percent increase from last year, when the state generated MVR 6 billion during the same period.

83 percent of the revenue - MVR 6.5 billion – came from tax revenue. This marks a 31 percent increase compared to the MVR 5 billion in taxes generated during the same period last year.

The biggest increase in tax revenue came from tourism, with MVR 2.3 billion in Tourism Goods and Services Tax (TGST) – up 39.4 percent compared to the same period last year.

The state generated MVR 3.2 billion in Goods and Services Tax (GST) – up 32 percent compared to the same period last year, and another MVR 2.2 billion in Business and Property Tax.

Meanwhile, state expenditure remained on par with last year, except for MVR 2.6 billion spent on salaries, wages and pensions – marking a 9.6 percent increase. The Finance Ministry attributed this to pay bumps under the pay harmonization initiatives.

The Maldives passed a record-high MVR 64.2 billion annual budget for this year – a huge chunk of which is going towards servicing USD 1.1 billion in debt obligations due this year. This includes a USD 500 million sukuk and another USD 100 million payment due in April.

The Maldivian government has repeatedly expressed confidence in its ability to service its debt.