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Economy TGST / government spending Maldives Impact 7.0/10 1 min read
State revenue surges driven by significant TGST growth

State revenue surges driven by significant TGST growth

The Ministry of Finance and Public Enterprises reported a significant increase in state revenue driven by Tourism Goods and Services Tax (TGST) growth. Total revenue and grants reached USD 1.24 billion as of 4 June, up 10.1% from USD 1.12 billion the previous year. Tax revenue accounted for 78% of state revenue, reaching USD 960 million. TGST generated USD 389 million, a 20% increase from USD 325 million last year. However, total government spending rose 17.6% to USD 1.24 billion, with heavy infrastructure spending and subsidy costs nearly doubling to USD 149 million due to higher global fuel prices from the Middle East war.

The Ministry of Finance and Public Enterprises reported a significant increase in state revenue driven by Tourism Goods and Services Tax (TGST) growth. Total revenue and grants reached USD 1.24 billion as of 4 June, up 10.1% from USD 1.12 billion the previous year. Tax revenue accounted for 78% of state revenue, reaching USD 960 million. TGST generated USD 389 million, a 20% increase from USD 325 million last year. However, total government spending rose 17.6% to USD 1.24 billion, with heavy infrastructure spending and subsidy costs nearly doubling to USD 149 million due to higher global fuel prices from the Middle East war.

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PSM News

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Jun 15, 2026

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The Ministry of Finance and Public Enterprises reported a significant increase in state revenue driven by Tourism Goods and Services Tax (TGST) growth. Total revenue and grants reached USD 1.24 billion as of 4 June, up 10.1% from USD 1.12 billion the previous year. Tax revenue accounted for 78% of state revenue, reaching USD 960 million. TGST generated USD 389 million, a 20% increase from USD 325 million last year. However, total government spending rose 17.6% to USD 1.24 billion, with heavy infrastructure spending and subsidy costs nearly doubling to USD 149 million due to higher global fuel prices from the Middle East war.

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