Expenditure on major development projects declines

Government spending on major development projects has declined compared to the same period last year.

According to the Ministry of Finance, capital expenditure so far this year stands at MVR 3.5 billion, which is 50 percent lower than the same period last year.

During the last year of the previous administration, capital expenditure stood at MVR 6.5 billion.

MVR 13 billion has been budgeted this year for major development projects. So far, 26 percent of the allocated budget has been expended.

Expenditure on development projects declined due to reduced spending on road development and airport projects this year. While expenditure on these projects amounted to MVR 300 million this year, MVR 2 billion had been spent on such projects as of June 2023.

The government is set to take additional measures to reduce state spending.

Total expenditure this year has been reduced by MVR 2.4 billion compared to last year. Expenditure on projects has been significantly reduced, while government operating expenditure increased by MVR 700 million. The largest portion of operating expenses is spent on salaries, which have increased by MVR 600 million compared to 2023. So far this year, MVR 5.5 billion has been spent on employee salaries.

While the total state budget for this year is MVR 49.8 billion, the government has spent MVR 18.8 billion so far this year.