A new report from the Auditor General’s Office shows that the state received MVR 1,630 million more than initially projected in the 2024 budget, despite the absence of specific policies aimed at increasing revenue. The report outlines several concerns related to fiscal planning, rising expenditure, and outstanding debts.

According to the findings, the state collected MVR 35,182 million in income and grants in 2018, surpassing the approved budget estimate for that year. However, the review notes that although the government’s fiscal strategy outlines revenue-enhancing measures, these were not included in last year’s budget.

The report highlights a steady rise in state expenditure and emphasises the need for improved planning to boost revenue. It also documents a significant increase in unpaid funds owed to the state. By the end of 2018, MIRA had outstanding dues amounting to MVR 16,802 million, while Customs owed MVR 571 million, figures that have grown over the past three years.

Outstanding loans also contributed to financial pressure, with MVR 4,504 million in overdue online and treasury loans registered by the end of 2024. Additionally, the state has yet to receive MVR 2,754 million in dividends, with major state-owned enterprises such as MWSC, HDC, STO and MPL owing more funds to the state than the reverse.

The report notes that although the 2024 budget proposed several corrective measures, these have not been put into practice. Subsidy spending remains an area of concern, with significant overspending recorded across electricity, fuel, food and sewerage subsidies. While MVR 2,258 million was allocated, expenditure exceeded this by MVR 993 million. Similarly, spending on Aasandha and welfare assistance also surpassed budgeted amounts.

Overall, the government allocated MVR 4,387 million for related programmes last year, but actual spending reached MVR 6,165 million, exceeding the budget by MVR 1,778 million.

The Auditor General’s Office has stressed the need for an actionable plan to ensure that proposed measures in future budgets are carried out. The report also calls for controlled spending and a reduction in borrowing, noting that medical expenses for the police, MNDF and their families continue to increase annually.