Government expenditure has increased significantly alongside higher revenue, according to the latest figures from the Ministry of Finance.

By 20 August, the Government had collected MVR27.61 billion in revenue and grants, a 10.4 per cent increasecompared with the same period last year.

Tax revenue rose by 12.1 per cent to MVR 21.48 billion. Tourism Goods and Services Tax (TGST) revenue increased by 7.4 per cent to MVR 7.39 billion, while business and property-related tax revenue rose by 20.5 per cent to MVR 5.55 billion.

However, total recurrent and capital expenditure reached MVR28.74 billion, up 19.3 per cent from MVR 24.09 billion during the same period last year.

Recurrent expenditure increased by 20.8 per cent to MVR 25 billion, while capital expenditure rose by 10.2 per cent to MVR 3.75 billion.

The increase in spending was driven mainly by higher administrative and operational costs, subsidies and council grants. Infrastructure-related capital expenditure stood at MVR 3.26 billion, while spending on land and buildings rose by 47.1 per cent to MVR 1.20 billion.

The figures show that while Government revenue continues to grow, expenditure on public services, council grants and infrastructure projects has also increased.