Finance Ministry Reports Decrease in State Spending, Increase in Revenue

The Finance Ministry’s Weekly Fiscal Development Report has revealed a reduction in state budget expenditure for the current year compared to the same period last year. The total expenditure recorded as of January stands at MVR 1.8 billion, marking a 21.6 per cent decrease from the MVR 2.3 billion spent during the corresponding period of the previous year.

The breakdown of the budget shows that recurrent expenditure and capital expenditure collectively amounted to MVR 1.4 billion, while loan repayment accounted for MVR 373.6 million. This financial allocation highlights the government’s strategic distribution of resources across various sectors.

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In terms of development projects, the Public Sector Investment Program (PSIP) has so far spent MVR 223 million this year. The PSIP is a critical component of the government’s development agenda, aimed at enhancing public services and infrastructure.

Despite this downward trend in expenditure, the report indicates an upward trajectory in government revenue. The total revenue for the period stood at MVR 1.8 billion, an increase from the MVR 1.7 billion recorded during the same period last year.

The Finance Ministry’s report provides a crucial insight into the government’s financial operations and economic strategy. The data suggests a careful balancing act between managing expenditures and maximizing revenue, essential for sustainable economic growth and stability.

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