State spends MVR 1 billion bn on investments so far

Government spending on various investments has reached MVR 1 billion so far this year, according to figures from the Ministry of Finance.

This is over MVR 200 million more than was spent during the same period last year, an increase of around 20 percent.

The ministry stated that most of the investment spending was in the form of funds released to state-owned companies.

This year’s budget had allocated MVR 378 million for investments, meaning current spending has exceeded that figure by 184 percent.

While the government had initially planned to take measures to reduce expenditure this year, including cutting state spending to MVR 2.5 billion, those reforms have not been implemented. As a result, the likelihood of a supplementary budget being proposed has increased.

The state budget for 2025 stands at MVR 56.6 billion. So far, MVR 23.5 billion has been spent, with MVR 16.6 billion going towards recurrent expenditure and MVR 2.1 billion towards capital expenditure. Total government spending this year is down MVR 2.3 billion compared with the amount spent last year.

The government has received MVR 20 billion in revenue so far this year.