Govt salary spending up MVR 477 million this year

Government spending on salaries and allowances for state employees increased by MVR 477.4 million during the first months of this year compared with the same period in 2025, according to the latest fiscal statistics released by the Ministry of Finance.

The figures show that expenditure on salaries, wages and employee benefits reached MVR 5.3 billion as of 14 June. This represents a 10 per cent increase over the corresponding period last year.

The statistics also indicate an increase in spending related to state-owned enterprises (SOEs). Expenditure on government companies reached MVR 16.2 million, an increase of MVR 2.1 million compared with the same period in 2025.

A portion of this expenditure is allocated to supporting the operations of state-owned enterprises, including employee-related costs at companies that require government assistance.

Overall government expenditure has risen substantially this year. According to the Ministry of Finance, total expenditure increased by MVR 8.5 billion compared with the same period last year, representing a 49 per cent increase.

The figures further show that debt repayment accounted for 33 per cent of total government expenditure during the period.

The increase in expenditure comes as government revenue recorded a decline last month.

According to revenue data released by the Maldives Inland Revenue Authority (MIRA), state revenue fell by 6 per cent in May compared with the same month last year.

The decline was attributed largely to lower collections from tourism-related taxes and fees, following a reduction in tourist arrivals. Authorities linked the drop in arrivals to the impact of the conflict involving Iran and wider regional developments.

Revenue from tourism-related sources, including tourism goods and services tax and other tourism-linked payments, recorded declines during the month, contributing to the overall reduction in state income.