Recurrent Expenditure increases as Capital Expenditure drops MVR 1.5 billion

Capital expenditure by the state is reported to be MVR 1.5 billion less than what it was last year despite the Government of Maldives having exceeded recurrent expenditure costs for the same period in 2024.

According to weekly statistics published by the Ministry of Finance, total expenditure by the government up until March 21 was MVR 8.94 billion. This is a MVR 1.45 billion decrease from statistics recorded for the same period last year.

However, a significant reduction in capital expenditure has caused a decrease in the total expenditure reported by the state. Capital expenditure stood at MVR 3.64 billion in 2023 for the review period, but statistics by the Ministry of Finance place capital expenditure at MVR 2.06 billion for this year.

The capital expenditure recorded for this period also includes expenditure for Public Sector Investment Programme (PSIP) projects, which has also decreased significantly in comparison to last year. While MVR 2.88 billion was spent on PSIP projects for the same period last year, the PSIP expenditure for 2024 stands at MVR 1.13 billion.

Although statistics record a drop of over MVR 1 billion in capital expenditure in comparison to the previous year, there has been an increase in the government's recurrent expenditure.

Total recurrent expenditure for the same period last year was recorded at MVR 6.75 billion, while the recurrent expenditure for this year has increased to MVR 6.88 billion.

The revenue accumulated by the government of Maldives thus far in 2024 is greater than it was in the previous year, with MVR 7.88 billion reported by official statistics. Last year, total revenue reported during the review period was MVR 7.75, and the observed increase is attributed to the government having earned an additional MVR 500 million in tax revenue.

The People's Majlis has approved a budget of MVR 49.86 billion for this year.