State Revenue Surges to MVR 27.4 Billion, Driven by Tourism and Tax Growth

State budget revenue and grants climbed to MVR 27.4 billion by 18 September 2025, recording a 6.6 percent increase compared to the same period last year. The growth, highlighted in the Ministry of Finance and Planning’s Weekly Fiscal Development Report, reflects strong performances in both tax and non-tax revenue streams, particularly boosted by the tourism sector.

Tax revenue accounted for MVR 20.9 billion, making up 76.6 percent of the total. Green tax collections more than doubled, rising by 102.2 percent due to recent rate adjustments. Departure tax revenue also surged by 46.1 percent, while personal income tax collections grew steadily by 15.7 percent, underscoring a broadening of revenue sources.

Non-tax revenue expanded by 22.6 percent, driven mainly by payments related to resort development property extensions. A significant boost came from airport development fees, which grew 55 percent on the back of a 9.6 percent increase in tourist arrivals that exceeded 1.5 million. Additional contributions were recorded from land acquisition and conversion fees, lease period extensions, and resort rental income.

The Sovereign Development Fund (SDF) saw notable gains as well, with deposits reaching MVR 1.5 billion—up 54.6 percent compared to last year—signaling stronger buffers for long-term fiscal stability.

By mid-September, the government had achieved 64.8 percent of its estimated revenue and grants for 2025, while expenditure stood at 54 percent of the annual target, reflecting a healthier fiscal balance.