Expenditure on subsidies fall by 21 percent

The government has recorded a budget surplus so far this year, driven by higher revenue and reduced spending, with subsidy expenditure falling by more than a fifth, according to the latest figures from the Ministry of Finance.

The ministry’s Weekly Fiscal Development Report shows that MVR 1 billion was spent on subsidies as of 8 May which is a 21.2 percent decline compared with the MVR 1.38 billion spent during the same period in 2024.

Recurrent expenditure has also declined, falling to MVR 11.3 billion from MVR 11.9 billion in the same period last year. However, the government’s expenditure on salaries and wages have not decreased.

Expenditure on salaries and pensions rose to MVR 4.8 billion, up from MVR 4.5 billion last year.

Capital expenditure saw a sharp fall, with savings of MVR 3.4 billion compared to last year.

On the revenue side, tax receipts increased to MVR 14.2 billion, contributing to a budget surplus of MVR 1.9 billion. Over the same period last year, the budget had recorded a deficit of MVR 2.4 billion.

The report noted that, as of May 8, the government had received 35.8 percent of the revenue and grants projected in the 2024 budget approved by Parliament, a 6.8 percent increase on the previous year.