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State exceeds budget allocation for SOEs in first quarter

01 April 2023, MVT 22:28
Ministry of Finance headquarters in Malé / MIHAARU FILE PHOTO
01 April 2023, MVT 22:28

The state has allocated more financial assistance to State Owned Enterprises (SOEs) in the first three months of this year than it initially budgeted, the statistics published by the Ministry of Finance has revealed.

According to the ministry, MVR 406 million has been disbursed to SOEs so far this year. However, the allocated amount for SOEs in this year's budget is a total of MVR 370 million. Therefore, in the first quarter of the year, the state has released MVR 36 million more than the budgeted amount to SOEs.

During the past five years of this administration, a total of MVR 18 billion has been spent on SOEs. For the last four years, the state budget has allocated an average of MVR 4 billion to these enterprises.

There are 30 government-owned businesses; however, less than 10 of these companies make a profit by the end of each fiscal year.

While the government spends heavily from the state budget on SOEs, huge amounts of revenue owed to the state have not yet been received. As of last year, these companies owed the state MVR 2.1 billion in dividends and MVR 570 million in Goods and Services Tax (GST) and Business Profit Tax (BPT).

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