The government has spent MVR 1.2 billion from the State Budget on State Owned Enterprises (SOEs) in the first quarter of this year.
The government has spent MVR 1.2 billion from the State Budget on State Owned Enterprises (SOEs) in the first quarter of this year.
As per the statistics published by the Privatization and Corporatization Board (PCB), the biggest expenditure was on subsidies provided through SOEs. MVR 1.2 billion was issued to companies as subsidies.
While MVR 60 million was issued as free aid, MVR 164 million was pent as capital injection. This is a 9 percent increase from the amounts spent in the first quarter of 2023.
The most coverage of administrative expenses was issued to Housing Development Corporation (HDC), Road Development Corporation (RDC), and Maldives Fund Management Corporation (MFMC). HDC was issued MVR 84 million, with RDC receiving MVR 24 million and MFMC receiving MVR 28 million.
In addition to this, WAMCO was provided with MVR 13 million, and Addu International Airport (AIA) with MVR 10 million.
The highest amount of subsidies were also issued to HDC, amounting to MVR 400 million. The second highest amount of subsidies were given to STO, at MVR 360 million. Fenaka received MVR 250 million as subsidies.
In the first quarter, 14 out of 30 SOEs operated at a loss.
The government has now instructed SOEs to take expenditure reduction measures. They have also decided to merge some SOEs and close down others in an effort to cut costs.
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