Government expenditure on subsidies declined in the first 26 weeks of the year, according to the latest figures released by the Ministry of Finance. A total of MVR 1.6 billion was spent on subsidies, representing a 19 per cent reduction compared to the same period last year.

The data, published in the Ministry’s ‘Weekly Fiscal Development’ report, show that combined spending on grants, contributions, and subsidies reached MVR 4.9 billion by mid-July. This compares to MVR 5.2 billion recorded during the same timeframe in the previous year.

Of the total spent in this category, subsidies accounted for the largest share. During the corresponding period last year, MVR 2.1 billion was allocated to subsidies, compared to the MVR 1.6 billion spent this year.

In contrast to the decline in subsidies, expenditure on Aasandha, the national health insurance scheme, has increased. So far this year, MVR 1 billion has been allocated to Aasandha, which represents a 9.9 per cent rise compared to the same period last year.

Grants to local councils have also seen a decline. This year, MVR 1 billion was spent on grants to councils, down from MVR 1.2 billion during the same period last year. This represents a decrease of 4.4 per cent.

According to the report, total Government spending stood at MVR 19.4 billion as of 17 July. In the same period, revenue and grants reached MVR 20.5 billion. By comparison, revenue and grants totalled MVR 19 billion during the same period last year, according to the Ministry of Finance and Development Planning.