State Records Budget Surplus of 1.2 Billion Rufiyaa as Revenue Rises to 8.8 Billion

The state's financial position has strengthened notably this year, with revenue surging to 8.8 billion rufiyaa and resulting in a budget surplus of 1.2 billion rufiyaa, according to the Weekly Fiscal Development Report released today by the Ministry of Finance.

As of March 20, total revenue and grants received by the state surpassed last year's 8.0 billion rufiyaa, driven primarily by increased collections from the goods and services tax particularly within the thriving tourism sector as well as the airport development fee. Tax revenue accounted for the lion’s share of state income, making up 79 percent of the total at 6.9 billion rufiyaa, a modest rise from 6.6 billion during the same period last year.

Non-tax revenues contributed 1.8 billion rufiyaa, showing a significant increase compared to 1.3 billion rufiyaa in the previous year. Grants made up a smaller portion, amounting to 47.1 million rufiyaa, up from 32.3 million rufiyaa.

While revenue rose, state expenditure was brought under tighter control, totaling 7.6 billion rufiyaa, considerably lower than last year’s 8.9 billion. However, certain areas such as employee expenses, the Aasandha national health insurance scheme, and subsidies saw marked increases.

Despite the reduced direct expenditure, the overall budget size has grown due to rising debt servicing costs. A major financial outlay during this period included the repayment of a $100 million loan and associated interest to Cargill Financial Services International in March, which, though not recorded as expenditure, affects total budget calculations.

The state’s improved fiscal health contrasts sharply with the same period last year, when the government faced a budget deficit of nearly 1 billion rufiyaa.

The report also highlighted key spending institutions, with the National Social Protection Agency leading at 883.8 million rufiyaa, followed by the Ministry of Education with 668.6 million, and the Ministry of Construction, Housing and Infrastructure with 441.8 million.

The Ministry of Finance credited the strong performance to a disciplined fiscal strategy, enhanced revenue collection mechanisms, and buoyant economic sectors such as tourism.