70 percent of budget allocated for projects unused

70 percent of the funds allocated for capital expenditure in this year’s state budget remain unused.

According to figures released by Finance Ministry 18 September, MVR 3.5 billion had been spent on projects, out of the MVR 13 billion allocated for the year. This amounts to just 27 percent of the capital budget.

Capital expenditure covers Public Sector Investment Programme (PSIP) projects and development projects financed through loans.

During the same period last year, MVR 8.4 billion had been spent. Of the MVR 3.5 billion disbursed so far in 2025, around MVR 3 billion went towards road and airport construction.

This year’s budget book does not provide a breakdown of individual projects but noted that capital expenditure was expected to rise, with about 35 percent of the budget earmarked for development projects.

So far this year, MVR 34 billion has been spent overall, with nearly 80 percent going towards recurrent costs such as running offices and paying staff salaries. The total budget for 2025 stands at MVR 56.6 billion.