Government has announced a targeted subsidy plan, offering monthly support of MVR 2,450 to the most financially disadvantaged 20 percent of the population.

According to the Ministry of Finance's detailed budget report, MVR 900 million has been allocated for these targeted subsidies in 2025, aiming to assist households most in need and correct the current system where wealthier households receive a larger share of subsidies.

At present, 43 percent of subsidies are received by the wealthiest 40 percent of the population, while the poorest 20 percent receives only 17 percent of government support.

Set to take effect in April 2025, the reform is expected to help offset increased costs for low-income households, estimated to rise by MVR 1,770 monthly. To determine subsidy eligibility, household income will be reviewed, and households must apply for the benefits, which will cover staples, fuel, electricity, and sewerage costs. The Government plans to work closely with local councils to facilitate an efficient and accessible application process.