Maldives Monetary Authority (MMA) has revealed that the state had spent MVR 12 billion within the first half of 2018 state operations.

According to the authority’s statistics, state expenses in the first half of 2018 has hiked by MVR three billion compared to the same time period during 2017. The state’s expenses during the first half of 2017 was recorded at MVR 7 billion.

In November 2017, the parliament passed the government’s proposed budget of MVR 27.9 billion for this year, with the votes from 39 lawmakers.

While the state’s recurrent expenses reach MVR 1.5 billion, a total of MVR 16 billion had been allocated for recurrent expenses for 2018. The main reason for the hike in recurrent expenses is deemed to be due to an increase in administrative expenses, the report reads.

Moreover, the report also reveals that a hike in capital expenses, which was above MVR 1.6 billion, was following the investment in development projects such as the China-Maldives Friendship Bridge, more commonly known as Sinamale' Bridge, as well as Dharumavantha Hospital. For such development projects, the state had allocated a budget of MVR 11 billion.

While state income reached over MVR 760 million within the past ten months, MMA revealed the reason to be an increase in T-GST income.

The budget was estimated to bring an income of MVR 22.4 billion this year which comprised of MVR 16.3 billion from taxes, MVR 5.2 billion from non-tax profits, and MVR 858 million received as aid.

The estimated state debt by the end of 2018 was MVR 43 billion, which rose by 15 billion in the past four years. Budget deficits for this year were estimated to be 2.5 billion. The government had also allocated over 5.8 billion for a total of 153 development projects in the public health sector.