The Ministry of Finance and Planning’s latest weekly fiscal development report reveals a notable acceleration in Public Sector Investment Program (PSIP) projects, bolstered by increased state revenue.
As of 18 December, total state revenue and grants reached USD 2.4 billion, marking an 11.5 percent (USD 246.4 million) increase compared to the same period last year.
The surge was largely driven by robust from the Tax on Tourism Goods and Services (TGST) collections, which rose by USD 84.3 million (14.8 percent) year-on-year to USD 655 million. Overall tax revenue grew to USD 1.8 billion, up USD 162.1 million, while non-tax income climbed to USD 590.1 million from USD 486.4 million previously.
Despite rising revenues, total expenditure reached USD 2.5 billion, with debt servicing and subsidies contributing significantly. However, subsidies saw a 5.3 percent decline to USD 220.5 million.
Meanwhile, PSIP spending surged to USD 486.4 million, with transportation projects—including airport development (USD 207.5 million) and bridge construction (USD 56.4 million)—dominating expenditures. Health sector investments under PSIP also rose sharply by USD 20 million.
Consequently, the fiscal deficit narrowed dramatically to USD 129.7 million—a 82.5 percent improvement from USD 745.8 million last year—reflecting stronger revenue performance and disciplined spending.