The Ministry of Finance and Planning has reported a significant reduction in subsidy spending, which fell by 21.3 per cent as of May 8, 2025, compared to the same period last year.

The drop contributed to a broader 3.8 per cent decline in total grants, contributions, and subsidies, which decreased from MVR 3.41 billion to MVR 3.28 billion.

Subsidy expenditure decreased from MVR 1.39 billion to MVR 1.09 billion, marking the largest decline within the category. Aasandha spending, however, rose by 11.9 per cent, increasing from MVR 657.4 million to MVR 735.8 million.

Other shifts included a decrease in council grants, from MVR 751.4 million to MVR 717.5 million, while spending on other grants and contributions rose from MVR 615.1 million to MVR 737.6 million. Grants, contributions, and subsidies continue to account for approximately 30 per cent of recurrent expenditure in the State budget.

Overall State expenditure stood at MVR 12.3 billion as of May 8, while total revenue and grants reached MVR 14.25 billion. This places the primary budget balance at a surplus of MVR 3.68 billion. The same period last year recorded a deficit of MVR 539 million, representing an improvement of 782.8 per cent in the primary balance.