If the allocation of an additional MVR 590 million as fuel subsidies in the proposed supplementary budget is granted, then the total expenditure on fuel this year will reach MVR 1.3 billion.
If the allocation of an additional MVR 590 million as fuel subsidies in the proposed supplementary budget is granted, then the total expenditure on fuel this year will reach MVR 1.3 billion.
The details of the supplementary budget shared by the Ministry of Finance show that this year's budget had an initial allocation of MVR 775 million for fuel subsidies.
An additional MVR 590 million as fuel subsidies was requested for in the MVR 5.1 billion supplementary budget proposed to parliament by Minister of Finance Moosa Zameer last Thursday.
Last year, too, saw MVR 1.9 billion spent on fuel subsidies.
Fuel subsidies make up the third largest portion of subsidies covered by the government, following aid to councils and Aasandha.
- Electricity: MVR 223 million
- Food: MVR 181 million
- Medical care abroad: MVR 166 million
- Medical care in-country: MVR 96 million
- Waste management: MVR 26 million
- Fuel: MVR 590 million
With the MVR 1.3 billion added as allocation for subsidies in the supplementary budget, this year's spending on subsidies will reach MVR 11 billion. This is MVR 1.3 billion higher than the amount seen last year, which was at MVR 9.7 billion.
One reason why subsidy costs were not brought down this year is the failure to implement subsidy reform measures within the year as earlier planned.
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