Gov’t spends 14 billion more than it received by end of 2024
The government's debt stood at 13 percent of GDP at the end of 2024
Finacne Minister Moosa Zameer
Statistics publicized by the Maldives Monetary Authority (MMA) have revealed that the government received MVR 34 billion in revenue in 2024, but spent MVR 14 billion more than it received.
The central bank’s figures show that the government spent MVR 48 billion last year.
While spending significantly exceeded revenue, many projects started by the former administration in the islands have been halted. President Dr. Mohamed Muizzu came to power after promising to continue all projects started by the former administration without halting any of them.
While the government spent several billion MVR more than the revenue received, the general living conditions of the Maldivian people have deteriorated, and people are facing significant difficulties in receiving assistance from Aasandha and the National Social Protection Agency (NSPA) for medical treatment.
According to statistics revealed by the Ministry of Finance, the government received the most revenue from taxes paid by citizens. While MVR 26 billion was received in taxes last year, this accounts for 76 percent of total revenue. Further, the government received much less in grants than previously estimated. Although it was estimated that MVR 1.5 billion would be received in grants, only MVR 658 million was received by the end of the year. This is 44 percent lower than estimated.
As criticism of the government intensifies, highlighting the rise in operational expenses and the decline in development spending, the Ministry of Finance's statistics reveal that the largest expenditure was on salaries and government operational costs.
70 percent of total expenditure was spent on salaries and operational costs. A total of MVR 34 billion was spent on salaries and operational costs.
In addition to this, the Ministry of Finance stated that MVR 11 billion was spent on development projects. MVR 2.3 billion was spent on loan repayments.
According to the central bank, the government's debt stood at 13 percent of GDP at the end of 2024.
