The Ministry of Finance and Planning has reported a reduction of MVR 237 million in subsidy expenditure compared to the same period last year.

According to the Ministry’s latest Weekly Fiscal Developments report, MVR 987 million was spent on subsidies between January and April 17, 2025, a decrease from the MVR 1.2 billion spent during the same period in 2024. The total budget allocated for subsidies in the 2025 State Budget stands at MVR 1.85 billion.

The Ministry attributed the decline largely to a reduction in fuel subsidy expenditure, with costs falling by more than a quarter compared to last year. Lower global oil prices were cited as the main reason for the decrease in electricity generation costs, helping to ease the State’s overall subsidy burden. Reducing subsidies has been a key recommendation by financial institutions and is reflected in the subsidy reform measures incorporated into this year’s State budget.

While subsidy spending decreased, the Ministry reported a simultaneous increase in Aasandha expenditure. As of April 17, 2025, MVR 671 million had been spent on Aasandha services, compared to MVR 554 million during the same period last year. This represents an increase of MVR 117 million. A total of MVR 1.85 billion has been allocated for Aasandha in the 2025 State budget.

In terms of the broader fiscal picture, the Government reported that MVR 11.7 billion had been collected in revenue as of April 17, while total expenditure stood at MVR 9.5 billion. The revenue balance during this period was recorded at MVR 2.2 billion.