The money provided to state-owned companies in the first quarter of this year was higher than the previous year, according to a report from the Privatization and Corporatization Board (PCB).
This comes despite a government announcement to reform companies and cut down spending.
According to the first quarter review report of government companies, the money disbursed to companies as subsidies, grants and capital increased compared to the first quarter of last year.
The biggest portion of the money was provided as subsidies. MVR 1.2 billion was provided as subsidies in the first quarter of this year. This is an increase of MVR 25 million compared to 2023.
Similarly, capital expenditure and grants were higher than the previous year. Money provided as capital increased by MVR 13.7 million while grants increased by MVR 1.5 million. Total expenditure increased by three percent.
Reforming state-owned companies is one of the key policies of President Dr. Mohamed Muizzu's government. The government says companies will be made financially viable and enriched without spending from the state budget.
