Govt loss and write-offs at MVR 374 M, thrice more than budgeted

Government's losses and write-offs reached to MVR 374 million as of October 12, which is thrice more than the budgeted total.

The Ministry of Finance in its most recent Weekly Fiscal Development noted that the budgeted total for losses and write-offs in 2023 is MVR 101.2 million; indicating a 270 percent increment.

It was reported that the budget allocated for losses and write-offs exhausted completely by the first half of the current fiscal year.

The state's losses and write-offs in its recurrent expenditure include compensations provided to public companies or other contractors. Although Mihaaru News sought to learn the companies to which state provided compensation in 2023, the ministry refused to disclose it.

Information Commission has since launched an inquiry to probe the ministry's reason for non-disclosure.

The government's losses and write-offs in the last four years reached a total of MVR 1.6 billion.

State compensates companies and contractors for damages incurred on the part of these companies when government terminates or cancels agreements unlawfully.

The government had disbursed compensation exceeding the budgeted total in the last four years as well, according to the ministry.