The government spent millions over budget for subsidies and Aasandha health insurance scheme in 2024 because of the postponement of cost-cutting measures.

According to the latest Weekly Fiscal Development Report released by the Finance Ministry, MVR 2.1 billion was spent on Aasandha and MVR 3.8 billion on subsidies at the end of the 52nd week of 2024.

Last year, the budget for Aasandha was MVR 1.9 billion. This means the government spent MVR 149 million over budget before the end of the year which is an increase of MVR 36 million compared to 2023.

The budget for subsidies in 2024 was MVR 3.6 billion. But the government exhausted the budget and spent MVR 151 million more by the last week of the year despite a budget supplementation approved by the Parliament.

However, the cost of subsidy was MVR 46 million lower than the same period in 2023.

Several cost-cutting measures were included in the state budget for 2025 in order to reduce the burden on finances due to the growing expenses of Aasandha and subsidies. These include targeted subsidies and charging wealthy individuals for health services.