State expenditure on monthly salaries has surged from MVR 1 billion to MVR 1.4 billion, according to finance minister

Finance Minister Hassan Zareer has stated that the state's monthly expenditure on salaries has risen from MVR 1 billion to MVR 1.4 billion.

Speaking at Tuesday's parliamentary sitting, the Minister stated that the government continues to publish monthly expenditure statistics. He further revealed that state spending on salaries currently amounts to MVR 1.4 billion per month.

We are publishing these statistics on a monthly basis. Currently, the state's direct wage bill stands at 1.4 billion Rufiyaa per month.

Hassan Zareer

Responding to a question posed by Kendhoo MP Mauroof Zakir, the Minister stated that the state’s monthly expenditure on salaries in 2023 amounted to MVR 1 billion.

According to data released by the Ministry of Finance in August, the state generated MVR 24.1 billion in total revenue and grants by the end of July this year. However, during the same period, the state's recurrent expenditure reached MVR 22.3 billion.

Specifically, 8.5 billion rufiyaa was spent on salaries and allowances, while administrative and operational expenses during this period amounted to 13.7 billion rufiyaa.

More than 13,000 employees are expected to be dismissed from state-owned enterprises following a surge in government spending linked to a wave of job recruitment aimed at securing victory in the recent local council elections. As the prices of essential goods continue to skyrocket, many are expressing deep concern over the government's decision to terminate such a significant number of staff.

While the government claims that employees are being dismissed as a measure to reduce state expenditure, opposition parties argue that the primary cause of the current fiscal strain is the wasteful spending of public funds initiated by President Muizzu since assuming office.