Govt spending rises by MVR 756m amid project delays
The Finance Ministry reported a revenue increase of MVR 709 million, primarily driven by higher tax collections.
As of November, the Maldives government’s expenditure increased by MVR 756 million compared to the same period last year, despite delays in several Public Sector Investment Programme (PSIP) projects due to financial constraints.
The latest data from the Ministry of Finance reveals that government spending reached MVR 45 billion by November 28, up from MVR 44 billion in the same period in 2022.
The rise in expenditure contrasts with a significant reduction in spending on development projects. The figures show:
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Capital expenditure decreased by MVR 456 million.
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Spending on PSIP projects dropped by MVR 1.4 billion.
However, other areas of spending saw increases:
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Recurrent expenditure, which includes day-to-day operational costs, increased by MVR 1.2 billion.
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Loan repayments rose by MVR 82 million.
Despite the expenditure growth, revenue and grants received this year, amounting to MVR 31.1 billion, have managed to cover recurrent expenses, which stood at MVR 30 billion.
The rise in recurrent expenditure is largely attributed to higher salaries and allowances for government employees.
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Salaries and allowances totalled MVR 12.3 billion this year, an increase of MVR 1.4 billion from MVR 10.9 billion in 2022
The Finance Ministry reported a revenue increase of MVR 709 million, primarily driven by higher tax collections. However, this growth was overshadowed by the MVR 756 million rise in government expenditure, resulting in a widening budget deficit.
The budget deficit has reached MVR 11.7 billion as of November. The approved budget for the year is MVR 49.9 billion, of which MVR 45 billion has already been spent, leaving limited room for further expenditure in the remaining days of the year.
