Maldives Government Expenditure Sees Significant Reduction

Government expenditure for the year thus far stands at MVR 4 billion, a 30% decrease compared to the same period last year, according to the Ministry of Finance. Last year’s expenditure reached MVR 5.9 billion.

The Ministry’s latest weekly fiscal report details the expenditure reduction, with MVR 3.1 billion spent on recurrent expenses and MVR 905 million on capital expenditures. Recurrent expenditure includes MVR 1 billion allocated for salaries and allowances and MVR 2.1 billion for administrative costs. Capital expenditure primarily covers structural development projects.

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The Ministry of Finance also reports that the government has generated MVR 4.4 billion in revenue so far this year. This total comprises MVR 3.9 billion in tax revenue, MVR 505 million in non-tax revenue, and MVR 9.9 million in aid. Tax revenue primarily consists of import duties, business and property taxes (BPT), and goods and services tax (GST).

According to the Ministry of Finance, revenue exceeded government expenditure by MVR 400 million as of the 15th of this month.

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