The Ministry of Finance and Public Enterprises has said state revenue and grants rose 9.3 percent to USD 1.72 billion compared with the same period last year.
According to the ministry, the largest increase in revenue came from tax revenue.
As per the Weekly Fiscal Development Report detailing government expenditure and revenue up until 6 August, total revenue and grants increased by 9.3 percent compared to the same period last year. This increase is driven mainly by higher tax collections, particularly corporate income tax and Goods and Services Tax (GST). While tax revenue increased by 10.1 percent, corporate income tax revenue increased by 1.4 percent compared to the same period last year. Meanwhile, GST increased by 10.4 percent, while Tourism Goods and Services Tax (TGST) increased by 4.7 percent.
Import duty revenue also saw an increase of 13.2 percent, while non-resident withholding tax increased by 25.8 percent. Green Tax revenue increased by 4.0 percent while Airport Service Charge and Departure Tax revenue increased by 14.9 percent.
Non-tax revenue accounted for a revenue of USD 356.68 million, an increase of 2.6 percent compared to the same period last year. Asset revenue increased by 33.1 percent while dividends from state-owned companies increased by 17.0 percent. The government received USD 29.49 million as grants, an increase of 105.6 percent compared to the same period in 2025.
Government spending also rose, with recurrent expenditure increasing by 20.2 percent, especially on government operations, salaries, pensions, subsidies and assistance. Subsidy spending increased by 75.7 percent while Aasandha expenditure increased by 17.2 percent.
Debt repayments increased sharply by 146 percent, with most of the repayments going towards sukuk. A total of USD 622.57 million was spent on debt repayment as of 6 August. Capital spending also increased by 7.0 percent, mainly on land and buildings, bridges, ports, and other infrastructure.
Despite the higher revenue, the government recorded an overall fiscal deficit, while the primary balance remained in surplus.