Expenditure reaches MVR 8.5 billion so far this year, marking a 49 percent increase compared to the same period last year
Data from the Ministry of Finance reveals a significant surge in total expenditure by state-owned enterprises compared to last year, with overall government spending increasing by 49 percent despite a 6 percent decline in tourism revenue attributed to the conflict in the Middle East. Although the government maintains that the primary driver of this expenditure hike is debt servicing, official statistics indicate that debt repayment accounted for only 33 percent of the total spending.
Finance Ministry: The amount of money given to run state-owned companies has also gone up. | RaajjeMV
Government expenditure on salaries and benefits for state employees as of the 14th of last month has increased by 10 percent compared to the same period last year, according to statistics released by the Ministry of Finance.
According to statistics released by the Ministry, the government spent MVR 5.3 billion on civil service salaries and benefits as of the 14th of last month. This represents an increase of MVR 477.4 million, or 10 percent, compared to the same period last year.
According to official statistics, government spending on the operations of state-owned enterprises has seen an increase. So far this year, 16.2 million Rufiyaa has been allocated to these companies, marking an increase of 2.1 million Rufiyaa compared to the same period last year.
Latest statistics indicate a significant rise in total government expenditure so far this year. Total spending has increased by MVR 8.5 billion compared to the same period last year, representing a 49 percent surge in expenditure.
The ongoing conflict in the Middle East has impacted the tourism industry, leading to a significant decline in the Maldives' state revenue. Total revenue has fallen by 6 percent, driven largely by a substantial decrease in collections from tourism-related taxes and fees.
While government expenditures have risen so far this year, the administration maintains that the bulk of its spending has been directed toward debt repayment. However, debt servicing actually accounts for only 33 percent of the government's total expenditure.
