The Maldives government has recorded a healthy fiscal surplus of MVR 2.06 billion in the first two months of 2026, according to the latest Weekly Fiscal Development report released by the Ministry of Finance and Planning, signalling a stronger-than-expected start to the financial year.
Cumulative revenues and grants reached MVR 8.68 billion as of 5 March, outpacing the same period last year when collections stood at MVR 7.87 billion. Total expenditure over the same period came in at MVR 6.62 billion, up from MVR 6.14 billion a year earlier, leaving the government in a notably comfortable fiscal position relative to its annual projections.
Tourism Tax Collections Drive Revenue Growth
The most significant driver behind the revenue uptick was Tourism Goods and Services Tax (TGST), which climbed to MVR 2.76 billion compared to MVR 2.38 billion during the corresponding period in 2205. Overall Goods and Services Tax (GST) collections rose to MVR 3.82 billion, reflecting continued buoyancy in tourism-linked economic activity.
Business and Property Tax (BPT) also posted a sharp increase, reaching MVR 2.16 billion against MVR 1.61 billion the previous year. Non-resident Withholding Tax more than doubled year-on-year, rising from MVR 217.5 million to MVR 405.3 million, a sign of growing foreign investment activity in the economy.
Green Tax collections recorded a notable jump as well, climbing from MVR 316.5 million to MVR 473 million, while Airport Services Charge and Departure Tax rose from MVR 280.5 million to MVR 331.4 million, broadly consistent with the uptick in tourist arrivals on an annual basis.
Spending Pressures Mount Across Key Sectors
On the expenditure side, recurrent spending reached MVR 6.07 billion, with salaries, wages and pensions accounting for MVR 2.72 billion of that total. Capital expenditure stood at MVR 549.7 million, up from MVR 396.1 million in the same period last year, driven primarily by infrastructure spending which rose sharply to MVR 363.7 million from MVR 226.5 million.
Among government agencies, the Ministry of Education recorded the highest budget utilization at MVR 698.4 million, followed by the National Social Protection Agency (NSPA) at MVR 609.7 million and the Maldives Police Service at MVR 401.3 million. The Ministry of Tourism and Environment saw a particularly significant year-on-year increase in spending rising from MVR 35.9 million to MVR 189.9 million.
Financing and interest costs, however, showed a marked improvement, falling from MVR 928.2 million to MVR 577.5 million over the period, a development that will likely ease some pressure on the government’s debt servicing obligations in the near term.
Loan Repayments Ease Significantly
One of the more striking figures in this week’s report is the sharp decline in loan repayments, which fell from MVR 2.27 billion to MVR 798.2 million year-on-year. While this has contributed to the improved overall balance, analysts may look closely at whether this reflects a structural shift in the government’s debt management strategy or a timing difference in scheduled repayments.
Public Investment Shifts Toward Energy and Education
The Public Sector Investment Program (PSIP) recorded spending of MVR 571.3 million as of early March, marginally ahead of the MVR 545.6 million posted at the same point in 2025. A notable reallocation of investment priorities is evident within the figures, with energy and utilities spending surging to MVR 137.6 million from just MVR 1.4 million a year earlier, reflecting the government’s push towards renewable energy infrastructure.
Education also saw a significant uptick in capital investment, with primary and secondary education spending rising from MVR 4.5 million to MVR 47.1 million. Meanwhile, transport infrastructure spending declined considerably, falling from MVR 395 million to MVR 182 million, suggesting a possible slowdown in major transport-related projects compared to last year.
Government Securities Remain Sizeable
Total government securities outstanding stood at MVR 100.76 million as of late February, with domestic instruments accounting for the bulk at MVR 91.51 million. MVR Treasury Bills made up the largest component at MVR 41.31 billion, while long-term securities with maturities exceeding 15 years totaled MVR 21.42 billion. External instruments, comprising sovereign bonds and Sukuk, accounted for MVR 9.25 billion of the outstanding debt.