Maldives Monetary Authority (MMA) reported an MVR 3.1 billion increase in state expenditure in the first six months of this year, compared to the first half of 2017.
The statistical report by MMA disclosed that state expenditure was at MVR 12 billion in the first six months of 2018 compared to the MVR 7 billion spent in 2017.
The state had allocated a budget of MVR 27.9 billion for 2018.
The report also highlighted an increase in recurrent state expenditure. While the state had allocated a budget of MVR 16 billion for recurrent expenditures in 2018, there was an increase of MVR 1.5 billion during the first half this year compared to the same period in 2017. The report noted that the growth was due to an increase in the government's administrative and operational costs throughout 2018.
Furthermore, state capital expenditure increased by MVR 1.6 billion due to major development projects, such as the Sinamale Bridge and the 25-storey Dharumavantha Hospital undertaken by the government. The state had allocated a total of MVR 11 billion for capital expenditures.
Although the state had an increase of MVR 3 billion in expenditure, state revenue grew by MVR 760.1 million in the first half of this year, due to the revenue generated from Tourism Goods and Services Tax (T-GST) in addition to Airport Development Fee (ADF).
According to MMA’s report, the state deficits were mainly financed through foreign loans.