The Maldivian government’s total revenue exceeded MVR 30 billion by the end of last month, according to the latest statistics released by the Finance Ministry.
The Ministry’s most recent Weekly Fiscal Development report indicates that revenue reached MVR 30.8 billion by the start of this month. While this figure represents an increase compared to the previous year, the rate of revenue growth remains lower than that observed in preceding years.
Compared to the same period last year, the state has collected an additional MVR 536 million this year.
Of the total revenue, MVR 23.8 billion was generated through tax revenue, while non-tax revenue accounted for MVR 6.5 billion. Although tax revenue has seen an uptick compared to last year, non-tax revenue has declined by MVR 1 billion over the same period.
Despite the year-on-year decline in non-tax revenue, the state has already realised 75 percent of the MVR 8.7 billion projected for the year. Consequently, it is anticipated that non-tax revenue will meet budgetary targets by the end of the year.
While tax revenue has increased by MVR 1.5 billion compared to last year, statistics suggest a slowdown in tax growth. A breakdown of specific tax categories indicates that this deceleration is driven by a decline in tourism-related receipts.
According to the latest report, the Airport Departure Tax is the only tourism-related levy that has not decreased compared to last year. Conversely, major revenue streams such as the Tourism Goods and Services Tax (TGST) and Green Tax have recorded lower collections this year than in the previous year.
The stagnation in revenue is directly linked to a slowdown in the tourism sector, which serves as the backbone of the Maldivian economy and contributes more than 60 percent of total state revenue.
Amid these fluctuations in the tourism industry, projections suggest that tourist arrivals for the year may fall short of initial estimates. As a result, the likelihood of the state failing to meet its projected revenue targets continues to grow.
