The government’s recurrent expenditure out of the annual state budget increased by MVR 627 million by the first week of June compared to the same period last year.
The Finance Ministry has published the “Weekly Fiscal Developments” report with figures of government income and expenditure as of June 6. A significant decline in the state’s expenditure on projects was notable from the report.
According to the report, MVR 2.15 billion has been spent on development projects this year. But MVR 5.35 billion had been spent from the state budget on development projects during the same period last year.
Despite the allocation of MVR 8.9 billion for public sector investment programme (PSIP) projects in the budget approved for this year, only 24 percent of the amount has been spent on projects nearly halfway through the year.
Recurrent expenditure or day-to-day expenses of the state have increased despite the reduction in capital expenditure.
The fiscal report shows that expenditure on employees has grown significantly. The state’s wage bill has increased 11 percent this year. Recurrent expenditure has also increased by MVR 627 million compared to last year.
Compared to the same period last year, state income was higher by MVR 307 million. The total income earned over the same period last year was MVR 15 billion. The figure was MVR 15.4 billion this year.
This included MVR 12.4 billion collected as taxes, MVR 2.7 billion as other revenue and MVR 156 million as grant aid.
