Recurrent state expenditure declines by 3.8%

The Ministry of Finance has reported a 3.8 per cent decline in recurrent government expenditure compared to the same period last year, according to its Weekly Fiscal Development Report released on 22 May 2025.

The report shows that 60.9 per cent of recurrent expenditure was directed towards administrative costs of government offices, which is 8.7 per cent lower than the corresponding period in 2024.

Significant reductions were recorded in specific spending areas. Expenditure on office supplies declined by 70.3 per cent, while spending on repairs and maintenance decreased by 27.1 per cent. Travel-related expenses were also reduced by 15.7 per cent.

Despite the reductions in several administrative categories, the report notes increased expenditure in areas such as Aasandha (the national health insurance scheme), procurement of services, and loan repayments.

As of last week, the total state expenditure stood at MVR 13.7 billion, reflecting a 17.9 per cent decrease compared to the same period last year. Capital expenditure dropped by 64.2 per cent, contributing significantly to the overall reduction in spending.

These trends have led to a budget surplus of MVR 1.1 billion.