Spending on salaries and allowances continues to rise, with the budget deficit reaching MVR 1.4 billion
2 އޯގަސްޓު 2026 | އާދީއްތަ 09:54Data from the Ministry of Finance reveals that total state expenditure has climbed to MVR 25.5 billion, driven by a significant year-on-year increase in spending on public sector salaries and subsidies. With recurrent costs accounting for the largest portion of these expenditures, the latest financial figures indicate a budget deficit of MVR 1.4 billion.
Spending on salaries and allowances continues to rise under President Muizzu's administration, with total expenditure reaching MVR 25.5 billion. | Presidents Office
Statistics released by the Ministry of Finance reveal that government expenditure has increased significantly so far this year compared to the same period last year, with spending on employee salaries and benefits rising sharply.
According to the Weekly Fiscal Developments report published by the Ministry of Finance and Public Enterprises for the period ending July 23, 2024, government expenditure on salaries, wages, and pensions has risen to MVR 8.5 billion, marking a 9.5 percent increase compared to the same period last year. This represents an increase of MVR 739.7 million over the MVR 7.8 billion spent during the corresponding period in the previous year.
As state expenditures continue to rise, the Ministry of Finance maintains that this shift is a direct result of the civil service salary increments implemented in November 2023.
According to the report, expenditure on subsidies has surged by 79.0 percent, reaching MVR 3.2 billion. This marks an increase of MVR 1.4 billion compared to the MVR 1.8 billion spent during the same period ending July 23 last year.
As subsidy expenditures continue to rise, the government maintains that the increase is driven by surging global prices for fuel and essential commodities, triggered by the ongoing conflict in the Middle East.
Total recurrent and capital expenditure reached MVR 25.5 billion. This represents a 19.7 percent increase, or MVR 4.2 billion, compared to the MVR 21.3 billion spent during the same period in 2025. This growth reflects the sustained allocation of funds toward civil service salaries and benefits, healthcare services, and social protection programs.
July 23 Financial records through 2026 indicate that while a primary surplus of MVR 1.5 billion has been achieved, the overall balance remains at a deficit of MVR 1.4 billion.
According to reports previously released by the Ministry, recurrent expenditure accounted for 87 percent of total state budget spending as of July 16 this year. Out of the MVR 21,362.7 million spent on recurrent costs, the largest portion was allocated to employee salaries and benefits. Specifically, MVR 8,008.4 million was spent on salaries and pensions.
