Ministry of Finance and Public Enterprises has revealed that the government recorded a fiscal surplus of MVR 1.0 billion by the end of April 2026, supported by strong growth in tourism-related tax revenue.

According to the ministry’s latest Weekly Fiscal Developments report, total revenue and grants reached MVR 15.4 billion by April 30, reflecting a 7.5% increase compared to the MVR 14.3 billion recorded during the same period in 2025.

The report identified Tourism Goods and Services Tax (TGST) as the main contributor to revenue growth.

TGST collections increased from MVR 4.6 billion last year to MVR 5.1 billion this year, marking an 11.7% rise.

Overall tax revenue stood at MVR 12.3 billion by the end of April, representing a 13.0% increase compared to the corresponding period last year.

State expenditure during the same period totalled MVR 14.3 billion, up 13.8% from the MVR 12.6 billion spent in the first four months of 2025. Recurrent expenditure increased by 11.1% to MVR 12.6 billion.

The largest increase in spending was recorded under employee compensation and benefits.

Expenditure on salaries and allowances reached MVR 4.5 billion by April 30, a 10.5% increase compared to the same period last year.

With the near completion of the government’s pay harmonization initiative, total spending on salaries, wages, and pensions rose to MVR 5.3 billion, reflecting a 10.1% increase year-on-year.

Despite the rise in expenditure, higher TGST receipts and stronger overall revenue growth enabled total state revenue to exceed expenditure, resulting in a fiscal surplus of MVR 1.0 billion by the end of April.