Government expenditure on salaries have increased while import duty revenue is still lower than last year.
According to the Finance Ministry's figures released on Thursday, the government received MVR 436 million in import duties till March 6. This is a decrease of MVR 164 million compared to the same period last year. The total tax revenue during the period was also down by MVR 115 million.
However, the total revenue during this period was higher than last year. One of the biggest reasons for this was the increase in airport development fees and quota fees for foreigners.
The figures show that the total revenue till March 6 was MVR 7.18 million compared to MVR 7.16 billion in the same period last year.
The state spent USD 132 million more on salaries than last year despite advice from International financial institutions to reduce political staff and salary expenditure.
The government's economic reform agenda states that salaries will be temporarily decreased from January, but this has not been implemented.
President Dr. Mohamed Muizzu said the salaries of political employees, heads of state companies, some employees, heads of independent institutions, judicial officials and MPs will be reduced.
However, this was not mentioned in the budget for 2025. The budget was passed after forgoing recommendations from the Budget Review Committee.
Several months later, the government sought parliament approval for the salary cuts but the government-controlled parliament advised against it.
