Subsidy spending reduced by MVR 650 million

Financial statistics indicate that there has been a year over year decrease of MVR 650 million in State expenses on subsidies.

Weekly fiscal development reports from the Finance Ministry show that as of August 7 last year, MVR 2.5 billion was spent on providing subsidies.

The same period this year shows spending on subsidies at MVR 1.8 billion, lower by over MVR 650 million.

This year's State Budget had an allocation of MVR 1.86 billion for subsidies. This amount was set with the intention of introducing targeted subsidies under the government's Economic Reform Agenda. However, this initiative was scrapped, as President Dr Mohamed Muizzu announced in May.

The weekly report as of last Thursday also shows that government's total recurrent expenditure has been brought down year on year.

Last year, total recurrent expenditure was at MVR 26.8 billion, while as of now this year, the amount is at MVR 22.3 million.

Although total recurrent expenditure has seen a decrease, spending on salaries and pension increased. Last year, MVR 7.9 billion was spend on salaries and pension, while as last Thursday, this year's amount has already reached MVR 8.4 billion.

The budget remains in surplus through reduction in operational costs and increase in revenue.

In revenues, MVR 23.7 has been received as free aid as of Thursday, with MVR 22.3 billion listed as total expenditure. This also includes debt repayment.

The budget's overall balance shows a surplus of MVR 1.4 billion.