As of May 14, the government recorded MVR 16.8 billion in revenue and grants, according to the latest Weekly Fiscal Developments report issued by the Ministry of Finance and Public Enterprises. This amount reflects a growth of MVR 1.8 billion, or 12.2 percent, compared to the MVR 14.9 billion recorded during the same period in 2025.

The report highlighted that tax revenue continued to be the primary source of income for the government, reaching MVR 13.3 billion by May 14. This represents an increase of MVR 1.9 billion, or 17.1 percent, compared to the same period last year. Notably, corporate income tax significantly contributed to this growth, with collections hitting MVR 2.7 billion—an increase of MVR 637.6 million, or 31.3 percent, from MVR 2.0 billion in the previous year.

Total government spending, including both recurrent and capital expenses, stood at MVR 16.7 billion, marking an increase of MVR 3.1 billion, or 22.4 percent, from MVR 13.6 billion spent during the same period in 2025. Recurrent expenses rose by MVR 2.6 billion (21.6 percent) to MVR 14.7 billion, while capital expenditure grew by MVR 441.9 million (28.8 percent) to MVR 2.0 billion.

Since total revenue and grants surpassed expenditure, the government recorded a budget surplus of MVR 118.2 million during this period. Debt servicing and interest costs remained steady at MVR 2.1 billion.

Subsidy spending increased significantly to MVR 2.3 billion, up MVR 993.1 million (77.8 percent) from MVR 1.3 billion in the same period last year. The rise was primarily attributed to higher fuel prices linked to the ongoing conflict in the Middle East, which elevated fuel subsidy costs for electricity generation. Despite this, the subsidy program helped keep prices for essential goods and services stable despite fluctuations in international markets.

Spending on salaries and allowances also went up. Total wages and benefits reached MVR 5.3 billion, an increase of MVR 477.4 million (9.9 percent) from last year’s MVR 4.8 billion, driven by the government’s ongoing pay harmonization efforts.

Within this category, wages and salaries amounted to MVR 2.4 billion (a 13.0 percent increase), employee allowances reached MVR 2.1 billion (up 7.2 percent), and pensions and retirement benefits totaled MVR 773.5 million.

The report concluded that increased tax revenue, especially from businesses, bolstered the government’s fiscal position during this period. Despite rises in subsidy and salary-related expenditures, the government maintained a budget surplus as of May 14.