Government expenditure and revenue were lower last month compared to January last year, the Finance Ministry's latest fiscal report has shown.
According to the Fiscal Development Report for January published by the ministry, MVR 3.5 billion was earned as revenue whilst the government spent MVR 2.9 billion. In January last year, MVR 4.1 billion was earned and MVR 4.9 billion was spent.
Recurrent expenditure accounted for the majority of government spending so far this year. The bulk of recurrent expenditure was salary and allowances for employees. Expenditure on wages was six percent higher than January last year but administrative expenses were 31 percent lower.
The biggest difference from last year was seen in capital expenditure with spending on land and buildings down 67 percent and costs associated with infrastructure assets down 89 percent.
Both tax and non-tax income were lower compared to January last year. Tax revenue was down six percent and non-tax revenue was down 52 percent. However, a budget surplus was recorded as income exceeded expenditure.
The primary balance (excluding financing and interest payments) was a surplus of MVR 776 million. The overall balance (after deducing financing and interest payments) was a surplus of MVR 585 million.
A budget surplus was recorded amid measures taken by the government to reduce spending. As part of the measures, during a recent visit to Thaa atoll, President Dr. Mohamed Muizzu urged the public to rank their most desired infrastructure projects at present in order of importance, citing fiscal constraints as the reason.
