Finance Ministry Reports Expenditure Surpassing Revenue in 2024 for the First Time

The government’s expenditure exceeded its revenue in the current year for the first time. According to weekly statistics released by the Finance Ministry, expenditure stood at MVR 7.03 billion compared to a revenue of MVR 6.86 billion, as of the 7th of this month.

Recurrent expenditure remains a major contributor to total expenditure, amounting to MVR 5.66 billion (81%). Within this category, MVR 2.19 billion was spent on salaries and allowances, representing an increase of roughly MVR 200 million compared to the same period last year.

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While the government has achieved a reduction of approximately MVR 300 million in overall recurrent expenditure compared to last year, salary expenditure remains high. This reduction is due to significant cuts in administrative expenses, including spending on subsidies.

Total government spending has also experienced a decrease, primarily driven by a notable reduction in capital expenditure. As of the 7th of this month, capital expenditure stood at MVR 1.37 million, reflecting a decrease of approximately MVR 1.7 billion compared to the same period last year.

Tax revenue has increased by roughly MVR 400 million compared to the previous year, reaching MVR 5.94 billion.

As of the 7th of this month, MVR 816 million has been designated for loan repayments, and MVR 198.3 million has been deposited into the Sovereign Development Fund.

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