LGA spending exceeds approved annual budget by MVR 13 million

The Local Government Authority (LGA) has spent MVR 51 million so far this year, exceeding its approved annual budget by about MVR 13 million, according to the latest government expenditure figures.

Data published by the Ministry of Finance and Planning show that LGA expenditure stood at MVR 51 million as of 24 September.

Parliament approved a budget of MVR 38.1 million for the authority for 2026. This means its expenditure has exceeded the full-year allocation by about MVR 13 million, or 34 per cent.

LGA spending has also increased significantly compared with the same period last year. The authority had spent MVR 25 million by this point in 2025, meaning expenditure this year is MVR 26 million higher, or more than double the amount recorded during the corresponding period last year.

The published figures do not specify the reason for LGA spending exceeding its approved budget.

The data show that block grants allocated to local councils are accounted for separately under a dedicated budget and are not included as expenditure under LGA’s own budget.

The figures come after the government abolished the Ministry of Cities and Local Government, which had responsibilities overlapping with some areas of LGA’s work.

The ministry had spent MVR 68 million before it was abolished. It had been allocated MVR 158 million for the year, leaving about MVR 90 million unspent at the time of its dissolution. Its responsibilities were subsequently divided between the housing and finance ministries.

According to the latest fiscal figures, LGA is the only institution to have spent more than its approved annual allocation so far this year.

Overall, MVR 46 billion, or about 71 per cent, of the MVR 64.2 billion state budget approved by Parliament for 2026 has been spent.

Government revenue and grants stood at MVR 30.2 billion as of 24 September.