Government spending up 28 percent

Finance Ministry. -- File Photo

Finance Ministry. -- File Photo

The total government spending has increased by 28 percent so far this year compared to the same period last year.

According to the Weekly Fiscal Development report published by the Finance Ministry, the government has spent MVR 15.9 billion this year. The amount stood at MVR 12.4 billion for the same period in 2022.

The biggest increase was for capital expenses which rose by MVR 4.8 billion while the recurrent expenses rose by MVR 1.7 billion.

Among the areas where capital expenditure increased, MVR 1.8 billion was for infrastructure. Most of it was spent on land and buildings. Land and buildings expenditure stood at MVR 546. 8 million in 2022 but rose to MVR 1.2 billion this year. MVR 486.3 million was spent on roads, bridges and airports last year compared to MVR 1.3 billion this year.

Most of the recurrent expenses were for administrative purposes and rose by MVR 1.3 billion compared to last year. MVR 261.1 million has been spent on state employees’ salaries this year.

While spending rose, state income also increased greatly. Compared to last year income rose by MVR 1.9 billion. Tax income rose by MVR 1.7 billion and non-tax income rose by MVR 235.4.

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