Government expenditure on salaries and benefits for civil servants has reached MVR 1.3 billion, making it the single highest cost for the state in 2019.
According to the weekly financial report publicized by the Ministry of Finance, 17 percent or MVR 760 million from the MVR 4.3 billion budgeted for salaries of state employees has already been spent.
Meanwhile, the government has paid allowances of MVR 600 million out of the MVR 3.6 million allocated for this purpose in the 2019 state budget. This represents 16 percent of the total budgeted amount.
State expenditure on major development projects is currently at MVR 371 million according to the statistics released by the finance ministry. Additionally, MVR 485 million was spent on Public Service Investment Programmes (PSIP) and MVR 60 million was spent on purchasing machinery and equipment.
Total government expenditure stands at MVR 4.1 billion, recurrent spending accounted for MVR 3.1 billion of this figure.
In recent years, recurrent spending has consistently been the highest source of state expenditure. During the past five years, there have been minimal efforts to correct the problem that more state funds had to be used for day-to-day operations of the government instead of development projects.
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