State expenditure up 24 percent compared to last year

Government expenditure has increased by 24.3 percent compared to the same period last year, according to the latest fiscal reports released by the Ministry of Finance. 

The ministry published updated figures on state spending as at September 24 on Wednesday.

Administrative and operational expenditure stood at MVR 18.12 billion as of September 24, compared to MVR 14.58 billion in the same period last year, an increase of 24.28 percent. Subsidy spending has also risen sharply, with the government spending MVR 4.15 billion on subsidies this year, up 77.35 percent from MVR 2.34 billion last year. This year’s subsidy expenditure is 43.6 percent higher than the MVR 2.89 billion allocated in the budget.

The government has disbursed MVR 1.41 billion to various parties, including student loans. While this is 23.68 percent higher than the MVR 1.14 billion allocated for the year, it is 31.25 percent lower than the MVR 2.36 billion spent by the same date last year.

Total government expenditure as of September 24 stands at MVR 33.56 billion, an 18.8 percent increase over the MVR 28.25 billion spent in the same period last year.

Last year’s budget included measures to reduce government spending, including cuts to electricity and food subsidies. However, President Dr. Mohamed Muizzu later decided not to implement those changes, stating that he did not wish to deprive the public of existing benefits. The decision drew criticism from economists, while foreign agencies have continued to advise the Maldives to reduce state spending.

In its latest report, the Asian Development Bank (ADB) expressed concern over risks to the Maldivian economy due to delays in reforms in state‑owned enterprises and subsidy schemes.