MVR 40B projected as revenue despite no measures to increase revenue

The projected state budget for 2026 includes MVR 40 billion as revenue despite lacking any measures to increase state revenue.

Finance Minister Moosa Zameer presented a record-high MVR 64.2 billion budget at Thursday’s parliamentary sitting.

The record-high budget anticipates receiving MVR 40.4 billion in revenue and grant aid. Total expenditure under the proposed budget has been set at MVR 49.9 billion, of which MVR 39.9 billion is designated for recurrent expenses, representing 62 percent of the total.

MVR 9.3 billion has been allocated in the budget for repayment of loans.

While MVR 40 billion is expected to be received as revenue, MVR 31.1 billion is projected to come from taxes. Non-tax revenue has been projected at MVR 8.7 billion, while an additional MVR 373.6 million is expected from grant assistance.

Zameer explained that this marks a 6.6 increase in revenue and grant assistance compared to what was budgeted for this year.

However, he underscored that the budget does not contain any new measures aimed at increasing revenue.  

“Nevertheless, with the passage of the amendments submitted to the tax-related laws – intended to strengthen collection and recovery of tax payments owed to the state – alongside this budget, a positive impact can be observed on revenue,” he said.

Zameer detailed that an increase in airport taxes, Tourism Goods and Service Tax (TGST) and Green Tax can be observed once the development of Velana International Airport (VIA) and regional airports is complete.

In this regard, the government anticipates receiving MVR 2.3 billion in airport taxes next year.

Under the proposed budget, the government is required to secure MVR 26.3 billion in financing, of which MVR 16.8 billion is planned to be obtained from international parties. 

The MVR 64.2 billion budget proposed marks the highest ever to date.