The Government’s efforts to reduce expenditure have resulted in a budget surplus of MVR 1.2 billion.

This positive development was detailed in the latest weekly figures released by the Ministry of Finance and Planning, covering data up to May 29.

The report also highlights a favourable trend in revenue receipts, which stood at MVR 16.5 billion by the end of May this year. This figure represents an increase compared with the MVR 15.3 billion collected during the same period last year.

This rise in revenue was largely driven by tax receipts, which reached MVR 12.9 billion, up from MVR 12.3 billion in the previous year. At the same time, non-tax revenue experienced an even more significant boost, climbing to MVR 3.4 billion from MVR 2.6 billion over the same timeframe.

Together, these figures indicate a year-on-year growth of 7.7 per cent in total income. This growth was underpinned by a moderate 4.7 per cent rise in tax revenue and a substantial 30.7 per cent surge in non-tax revenue.

On the expenditure side, state spending has seen a notable decline this year. Total outlays amounted to MVR 18.3 billion, compared to MVR 21.9 billion as of 29 May last year, reflecting a 16.3 per cent reduction.

More specifically, recurring expenses for the current fiscal year were reported at MVR 13.8 billion, showing a slight decrease of 1.97 per cent from the MVR 14.1 billion spent during the same period last year.

However, there was a sharp increase in the cost of servicing loans, which surged by 151.9 per cent, rising from MVR 1 billion to MVR 2.5 billion.

Taken together, these figures suggest that the state’s budget position has improved significantly. Whereas the budget was in deficit by MVR 2.9 billion as of 29 May last year, this year it recorded a surplus of MVR 1.2 billion.

To achieve this outcome, the Government has adopted several measures to enhance fiscal management. Projects have been initiated under separate arrangements and entrusted to state-owned companies to ensure that costs do not exceed actual expenses. Furthermore, the Government has implemented bulk procurement of materials for these projects as a cost-saving strategy.