Despite a significant reduction in public expenditure, budgetary spending has increased by 45.3 per cent compared to the previous year, according to the latest data released by the Ministry of Finance and Planning

The Ministry’s weekly revenue and expenditure report revealed that, as of February 6, the state had earned MVR 3.7 billion, with MVR 3.3 billion generated from tax revenue. Non-tax revenue saw a sharp rise, reaching MVR 393.5 million, while grant-in-aid stood at MVR 16.5 million.

During the same period, budgetary expenditure totalled MVR 2.4 billion, reflecting a 40 per cent decline from the MVR 3.7 billion spent in the corresponding period last year.

A major factor behind this reduction was a 19.9 per cent drop in recurring expenses, particularly in Administrative and operational costs, which fell from MVR 1.8 billion to MVR 1.2 billion, marking a 34.5 per cent decrease ins comparison to the the previous fiscal year.

Capital expenditure also saw a significant cut between January 1 and February 6. Compared to the MVR 787 million spent in the same period last year, this year's spending dropped to MVR 102.5 million, representing a dramatic 86 per cent decline.

Despite these reductions, total public expenditure—which includes debt repayments—has risen, contributing to the increase in budgetary spending. After deducting total expenditure from revenue, the Government recorded a surplus of MVR 1.2 billion, a 45.3 per cent increase from the MVR 886.9 million surplus reported last year.