Govt staff salaries hike to MVR 10.2 billion this year
The finance ministry noted that the expenditure figures are subject to change as reconciliation of accounts is still ongoing.
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Finance ministry has reported an increase in government employees' salaries and allowances to MVR 10.2 billion for this year.
This update comes as the ministry resumed releasing government expenditure and revenue data after a four-month hiatus.
According to the ministry's Weekly Fiscal Development Report, the government has spent MVR 39.7 billion as of October 24, out of a total budgeted amount of MVR 49.8 billion for the year. This represents an increase of approximately MVR 700 million compared to the same period last year.
During this period, recurrent expenditure has risen, while capital expenditure has declined:
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Recurrent Expenditure: MVR 27.2 billion (compared to MVR 25.1 billion last year)
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Capital Expenditure: MVR 10.4 billion (compared to MVR 11.8 billion last year)
Within the recurrent expenditure category, increases were recorded in salaries, allowances, pensions, and administrative and operating expenses compared to last year. Key figures include:
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Salaries: MVR 4.5 billion (compared to MVR 3.9 billion last year)
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Allowances: MVR 4 billion (compared to MVR 3.5 billion last year)
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Pensions: MVR 1.6 billion (compared to MVR 1.3 billion last year)
Administrative and operating expenses rose by MVR 1.1 billion, which included:
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Administrative Supplies: MVR 1.1 billion (an increase of MVR 500 million)
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Aasandha (Healthcare Scheme): MVR 1.7 billion (an increase of MVR 200 million)
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Council Grants: MVR 1.8 billion (an increase of MVR 200 million)
In contrast, spending on subsidies, repairs, training, administrative services, and operational consumables saw a decrease compared to last year.
The finance ministry noted that the expenditure figures are subject to change as reconciliation of accounts is still ongoing.
The report highlighted that over MVR 1 billion has been spent on the salaries and allowances of government employees. However, the exact number of political employees has not been disclosed. President Mohamed Muizzu had earlier pledged to limit the number of political employees to 700, while opposition parties claim the actual number will exceed 2,000. The government has not provided further details on the matter.
On October 15, President Muizzu announced plans to lay off 228 political employees within two weeks as part of fiscal reforms aimed at reducing government spending. Although the deadline expired yesterday, the government has yet to release additional information regarding these layoffs.
