The weekly fiscal development report released by the Finance Ministry reveals that over MVR 807 million (USD 52 million) has been spent on Aasandha as of April 20, which is more than 80 percent of the MVR 1 billion (USD 64.5 million) budgeted for Aasandha this year. This figure represents a 50 percent increase compared to the same period last year. Shockingly, over half of the budget had already been spent in the first quarter of this year.
It’s not the first time that actual spending has exceeded the budgeted amount for Aasandha. Last year, MVR 730 million had been budgeted, but the actual spending had risen to MVR 1.6 billion by the end of the year, prompting the government to submit a supplementary budget of MVR 906 million (USD 58.7 million).
The Aasandha scheme is an essential aspect of Maldivian healthcare, and its increasing expenses are a cause of concern for the government, which is already grappling with a high level of debt. The high spending on Aasandha comes after the World Bank recently advised the Maldivian government to reduce subsidies and expenditure to improve the economy. The financial institute advised that fiscal consolidation is necessary to keep debt repayment at a sustainable level.
While the government has not yet made any official statements on the matter, it’s clear that the increasing expenses on Aasandha are likely to have an impact on the government’s finances. The government will need to find ways to fund this program sustainably to avoid putting further strain on its already overburdened economy.
