Gov’t’s Recurrent Spending Increases by MVR 627 Million

Statistics released last week reveal a significant rise in the government’s recurrent spending, which has increased by MVR 627 million.

The Ministry of Finance’s weekly fiscal development report shows that MVR 14.2 billion was spent on recurrent expenditures up to 6 June this year, compared to MVR 13.6 billion in the same period last year.

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The rise in recurrent expenditures is attributed to higher salaries and allowances for government employees and increased costs for administrative supplies.

Conversely, capital expenditure has been almost halved. The government has spent only MVR 2.1 billion of the MVR 8.9 billion allocated for public sector investment projects this year. In the same period last year, MVR spent 5.4 billion on such projects.

On a more positive note, government revenue has slightly increased, with MVR 15.4 billion raised compared to MVR 15.1 billion last year. This increase is primarily due to higher tax revenue, with MVR 12.4 billion received from taxes. Additionally, grant revenue saw a slight rise, totalling MVR 156 million.