The state budget's spending on subsidies this year has decreased by more than a quarter.

According to the latest 'Weekly Fiscal Developments' report released by the Ministry of Finance, a total of MVR 2.79 billion was spent on grants and subsidies to various parties by the 17th of this month. During the same period last year, a total of MVR 2.8 billion was spent on this.

Grants and Subsidies:

  • Aasandha: MVR 670.7 million (MVR 554 million last year)
  • Subsidies: MVR 986.9 million (MVR 1.22 billion last year)
  • To Councils: MVR 537.8 million (MVR 563.4 million last year)

Finance said that among these expenses, spending on subsidies during this period has decreased by about more than a quarter, mainly due to the decrease in subsidies for oil imports as a result of lower oil prices in the global market.

In addition, compared to this period last year, the state's total recurrent and capital expenditure has been reduced by 25.3 percent. Thus, out of the total expenditure estimated for this year in the approved budget, 19.3 percent has been spent by the 17th of this month. During this period this year, 92.2 percent of the state's expenditure was recorded as recurrent expenditure, while 7.8 percent was capital expenditure.

According to the Finance report, 29.3 percent of the total revenue and grants included in the budget approved by the Parliament for this year, estimated to be received by the state this year, has been received by the 17th of this month.

Thus, 77.1 percent of the revenue and grants received so far is from tax revenue, while non-tax revenue accounts for 22.3 percent. Finance said that compared to this period last year, the state's total revenue and grants have increased by 5.4 percent.