Development stalls, operational costs surge, grants decline, total gov’t expenditure soars
Non-tax revenue has decreased
As part of Rakeedhoo harbor development project
According to the latest statistics published by the Ministry of Finance on December 19, the government has spent a total of MVR 48.3 billion on state expenses and loan repayments so far this year.
This is an increase of MVR 1.9 billion compared to the MVR 46.4 billion spent during the same period of 2023.
Although the government's total expenditure has surged, government investments have declined, and many development projects have stalled.
As a result, the expenditure on the Public Sector Investment Program (PSIP) has decreased to MVR 10.3 billion this year. This is MVR 1.1 billion less than the MVR 11.4 billion spent on PSIPs during the same period last year.
According to the finance ministry’s statistics, operational costs have increased from MVR 30.2 billion in 2023 to MVR 32 billion this year. The increase in operational costs is mainly due to an MVR 1.4 billion increase in expenses for salaries, wages, and pensions. In addition to this, administrative and operational costs have increased by MVR 737 million. However, capital expenditure has decreased compared to last year. This year, MVR 13.9 billion was spent, while MVR 14.1 billion was spent last year.
While expenditure on ongoing government projects has declined, government revenue has surged. The government has received MVR 32.7 billion in revenue. This is more than the MVR 32 billion received during the same period last year. The increase in revenue is mainly due to an increase in tax payments. In 2023, MVR 22.8 billion was received, while this year, MVR 24.9 billion has been received in taxes.
On the other hand, non-tax revenue has decreased.
It has decreased to MVR 7.3 billion, which is MVR 877 million less than last year. Grants received by the government have also decreased. This year, the government received MVR 612 million, which is MVR 170 million less than the amount received during the same period in 2023.
The state budget for 2024 has been set at MVR 49.9 billion. However, in October, the People's Majlis approved a supplementary budget of MVR 5.1 billion. With this, the total budget for this year has risen to MVR 55 billion.
