Government Spending Reaches MVR 48 Billion

The government has spent a total of MVR 48.3 billion this year on state expenditure and loan repayments, according to statistics released by the Ministry of Finance on 19 December. 

This represents an increase of MVR 1.9 billion compared to the MVR 46.4 billion spent during the same period last year.  

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Despite the higher overall expenditure, fiscal challenges have stalled several development projects, reflected in a reduction in public sector investment. Spending on the Public Sector Investment Programme (PSIP) dropped to MVR 10.3 billion this year, MVR 1.1 billion less than the amount allocated during the same period in 2023.  

Recurrent expenditure, however, continued to rise, increasing from MVR 30.2 billion last year to MVR 32 billion this year. Within this category, spending on salaries, wages, and pensions grew by MVR 1.4 billion, while administrative and operational expenses rose by MVR 737 million. In contrast, capital expenditure saw a slight decline, with MVR 13.9 billion spent this year compared to MVR 14.1 billion in the same period last year.  

On the revenue side, the government generated MVR 32.7 billion, an increase from the MVR 32 billion collected in the same period last year. The rise is primarily attributed to higher tax revenue, which totalled MVR 24.9 billion compared to MVR 22.8 billion last year. 

However, non-tax revenue decreased to MVR 7.3 billion, down by MVR 877 million compared to the previous year.  Grant aid also declined, with the government receiving MVR 612 million this year, MVR 170 million less than the grants received during the same period in 2023.  

The state budget passed for 2024 was MVR 49.9 billion. In October, the parliament approved a supplementary budget of MVR 5.1 billion, raising the total budget to MVR 55 billion.