LGA expenditures exceed allocated budget by MVR 13 million
3 އޮކްޓޯބަރު 2026 | ހޮނިހިރު 16:30According to statistics from the Ministry of Finance, the Local Government Authority (LGA) has spent 51 million MVR as of September 24 this year, exceeding its allocated budget of 38.1 million MVR. While the government is currently implementing measures to reduce state expenditure, the authority has yet to clarify the reason for the 13 million MVR overspend. This development has drawn public criticism, amid warnings from experts that the national debt is projected to increase significantly in the coming years.
The Local Government Authority (LGA) has held a meeting with the Th. Madifushi Island Council to discuss the challenges facing the council and identify areas where support is required. | LGA
The Local Government Authority (LGA) has exceeded its Parliament-approved budget for the current year, spending an additional MVR 13 million beyond its allocated funding.
This was revealed in the latest fiscal reports released by the Ministry of Finance, which detail the government's revenue and expenditure.
According to statistics from the Ministry of Finance, the Local Government Authority (LGA) has spent a total of MVR 51 million as of September 24 this year. However, when the People's Majlis passed this year's state budget, the allocated funding for the operation of the LGA was set at MVR 38.1 million.
According to these figures, the agency has overspent its allocated budget by 12.9 million Rufiyaa, or approximately 13 million Rufiyaa. This marks a significant increase over the initially approved budgetary limits.
Despite the Local Government Authority (LGA) significantly exceeding its allocated budget, neither the government nor the authority has yet clarified the reasons behind this overspend. Typically, expenditures exceeding the initial budget are facilitated either through a supplementary budget or by reallocating funds from other budgetary codes.
Public criticism has mounted over government spending exceeding the allocated budget, at a time when the administration claims to be implementing austerity measures to improve the state's financial situation.
Financial experts are projecting that the current administration will increase the national debt by 57.5 billion Rufiyaa between January 1, 2024, and the end of December 2026.
