GST growth drives 11% increase in state revenue

GST revenue has increased by 10 percent this year compared to the same period last year, while total state revenue has grown by 11 percent, according to the Finance Ministry’s latest weekly fiscal report.

As of July 23, GST collection stood at MVR 9.96 billion, up from MVR 9.09 billion recorded during the same period last year, a 9.7 percent increase. The Ministry noted that GST continues to be the largest contributor to tax revenue.

Total revenue (including grants) reached MVR 24.1 billion as of July 23, compared to MVR 21.7 billion during the same period last year, reflecting an 11 percent increase. This means the government has achieved 59.7 percent of the annual revenue estimate of MVR 40.4 billion.

The Finance Ministry said the rise in tax revenue, particularly the sustained increase in GST, was the main driver of overall revenue growth.

The state has also received more free aid than projected. While the 2026 budget estimated MVR 374 million in grants, MVR 454 million had been received by July 23, exceeding expectations.