State spending down 15 percent as capital expenditure falls

This year's state budget spending as of last Thursday sees a drop of 15.6 percent when compared to the same period last year, as per statistics from the Finance Ministry.

The statistics show that MVR 24.8 billion has been spent by the state from their budget up till last Thursday.

The state's recurrent expenditures have fallen 1.7 percent, with capital expenditure falling 57.4 percent as a result.

Recurrent expenditures have seen a 56 percent usage in state administration and has been calculated that there is a 5.5 percent decrease compared to the same time period last year. There is a 14.1 percent drop in procurement of office supplies for efficient work environments and a 16.6 percent drop in renovation and maintenance expenditures.

State travel expenditures have also seen a 6 percent drop compared to the same time period last year. Expenses pertaining to state aid and providing subsidies have seen a 7.5 percent drop from 2024.

As per the financial calculations up to last Thursday, the state has spent MVR 3.1 billion from their budget on capital expenses. Including road work, bridge work and airport modernization, infrastructural development costs are at MVR 2.7 billion this year.

MVR 12.4 billion has been set aside for the Public Sector Investment Program (PSIP), with MVR 4 billion having been spent on programs thus far.

Last year within the same time frame, a considerable amount of the PSIP budget was spent on dredging and road development projects. This year, the PSIP budget is mainly put towards various projects in solving harbour issues.

Projects such as these have seen a total expenditure of MVR 2.5 billion within this year. MVR 124.6 million has been spent on housing projects. 

With state spending down, the revenue increment streak, up until last Thursday, has been maintained. There is currently MVR 25.3 billion in state revenue, along with free aid. Last year, this number was at MVR 24.1 billion in the same time frame.

Tax revenue is seen to be the main contributor to state revenue. Up until last Thursday, tax revenue saw MVR 19.7 billion, a MVR 700 million increase compared to the same time last year.

Non-tax revenue has seen increases as well. Compared to the same time last year there was a gain of MVR 4.7 billion. This year, until last Thursday, non-tax revenue saw the state gain MVR 5.4 billion.

With revenue being higher than spending, the overall balance of the state is now being held at a surplus of MVR 534.6 million.