Free aid receipts more than doubled to MVR 495.9 million

Free aid received by the state this year more than doubled compared to the same period last year, reaching MVR 495.9 million as at September 24, according to the Finance Ministry. 

The ministry had originally projected MVR 373.6 million in grants for 2026, but actual receipts have surpassed the estimate by MVR 122.3 million.  Last year, grants stood at MVR 237.3 million, meaning this year’s inflow is MVR 258.6 million higher, more than double the previous year’s level. 

Total revenue and grants reached MVR 30.2 billion, a 5.1 percent increase from MVR 28.8 billion in the same period last year.  Tax revenue rose from MVR 21.366 billion to MVR 23.388 billion. 

Tourism Goods and Services Tax (TGST) collections reached MVR 7.879 billion, up 2.7 percent from MVR 7.669 billion last year. Resort rent increased 1.7 percent, rising to MVR 1.267 billion from MVR 1.245 billion. 

Government expenditure totalled MVR 33.562 billion, an 18.8 percent increase from MVR 28.250 billion last year.  Recurrent expenditure rose from MVR 24.321 billion to MVR 28.897 billion, while spending on Aasandha increased 23.3 percent to MVR 1.748 billion. 

The government has historically budgeted large amounts for grants, but actual receipts have consistently fallen short. In 2023, the state expected MVR 2.5 billion but received MVR 515 million; the following year, MVR 660 million was received against an estimate of MVR 1.5 billion; and last year, MVR 415 million was received despite a MVR 2.6 billion projection. Following this trend, the 2026 estimate was set significantly lower.