The Ministry of Finance and Planning has announced a significant strengthening of the Maldives’ fiscal position this year, crediting robust tourism performance and targeted government reforms for the turnaround.
According to the ministry’s latest update, total revenue and grants reached USD 2.32 billion by early December — a 10.6% increase compared to the USD 2.09 billion collected during the same period last year. At the same time, state expenditure fell sharply, declining 12.5% to USD 2.43 billion.
The combined effect of higher income and tighter spending controls led to one of the most notable fiscal improvements in recent years. The national budget deficit contracted by 84.1%, dropping from USD 674.45 million in 2024 to USD 110.25 million this year.
Tax revenue saw a strong uptick, rising 9.3% to USD 1.74 billion. Much of this growth was driven by the Goods and Services Tax (GST), particularly from the tourism sector. Tourism GST — which accounts for roughly two-thirds of all GST collections — climbed 13.9% to USD 635.54 million, supported by continued growth in visitor arrivals and the tax rate increase from 16% to 17% introduced in July.
General GST collections also rose, increasing 8.2% to USD 324.25 million.
Non-tax income registered an even larger jump, expanding 19.7% to USD 564.20 million, mainly due to increased property-related revenue.
The government also reported progress in strengthening national reserves. Contributions to the Sovereign Development Fund grew by 87.9%, reaching USD 155.64 million, as part of efforts to bolster financial resilience and support future debt obligations.
Officials say the figures reflect the early results of a broader fiscal reform agenda and underscore the importance of tourism-driven economic momentum.
