The Government spent MVR 1.8 billion more on debt repayment in the first half of this year compared to the same period in 2024, even as overall state expenditure declined, according to the Finance Ministry.

The Ministry’s latest Weekly Fiscal Development Report shows that of the MVR 20.6 billion spent from the state budget as of 12 June, MVR 3 billion was allocated to loan repayments. This is a sharp increase from the MVR 1.1 billion spent on debt servicing during the same period last year.

Despite the increase in debt repayment, total Government spending has dropped. Capital and recurrent expenditures fell to MVR 15.6 billion, down from MVR 20.3 billion in the corresponding period last year. Overall spending declined by 8.7 percent year-on-year.

Due to lower expenditure, the State recorded a budget surplus of MVR 1.2 billion so far this year.

Meanwhile, total revenue and grants rose to MVR 17 billion, a 6 percent increase from the MVR 16 billion collected during the same timeframe in 2023.