Govt reduces office equipment spending by 72.5%

The Ministry of Finance has reduced spending on office equipment by 72.5 percent, according to the Weekly Fiscal Developments report published on 8 May 2025.

The report, released by the Ministry of Finance and Planning, states that MVR 177.1 million was spent on equipment for government offices so far this year. During the same period last year, the expenditure was MVR 644.2 million.

The report also shows that, as of 8 May 2025, the government had received 35.8 percent of the revenue and grants projected in the 2025 budget. This reflects an increase of 6.8 percent compared to the same period in 2024.

Tax revenue accounted for 78.0 percent of total state revenue, with collections reaching MVR 11.1 billion. Of this, 79.2 percent came from Goods and Services Tax (GST), corporate income tax, and import duty.

By 8 May, 25.0 percent of the total estimated annual expenditure had been spent, representing a 21.8 percent decrease compared to the same period last year.

Recurrent expenditure made up 91.7 percent of total expenditure. During the period, staff-related expenses increased by 7.9 percent, while total recurrent expenditure decreased by 5.2 percent.

Subsidy spending fell by 21.3 percent, attributed in the report to fluctuations in global oil prices.

Capital expenditure declined by 73.2 percent compared to the same period in 2024. The Ministry attributed this reduction to policy measures aimed at tightening capital spending and the higher level of foreign disbursements made during the first quarter of 2024 for major construction projects.