The Finance Ministry's Weekly Fiscal Development Report has shown that the government exhausted the MVR 1.8 billion subsidy budget and spent an additional MVR 1.5 billion on subsidies last year.
The ruling People’s National Congress (PNC) supermajority approved the 2025 budget with MVR 1.8 billion for subsidies.
However, as of December 31, 2025, MVR 3.4 billion was spent on subsidies, according to the fiscal report.
Although plans were made to cut Aasandha health insurance costs, this was not achieved because the measures were not implemented.
MVR 1.8 billion was budgeted for Aasandha in 2025, but MVR 735 million extra was spent to cover Aasandha costs.
The subsidy budget ran out because the government did not change to a targeted subsidy system as earlier planned.
In 2024, MVR 3.9 billion was spent on subsidies. This means the subsidy expenditure in 2025 was MVR 471 million less than in 2024.
