Government Expenditure Exceeds Revenue for First Time in 2024

Recent data released by the Finance Ministry indicates a significant development in the fiscal landscape, with government expenditure surpassing revenue for the first time this year.
As of March 7, government revenue stood at MVR 6.86 billion, slightly trailing behind total expenditure, which reached MVR 7.03 billion. The bulk of the expenditure, approximately 81 percent, was allocated to recurrent expenses, totaling MVR 5.66 billion. Notably, salaries and allowances accounted for MVR 2.19 billion, witnessing an increase of around MVR 200 million from the previous year.
Despite the rise in salary expenditure, the government managed to reduce total recurrent expenses by approximately MVR 300 million, mainly attributed to decreased administrative costs, including Aasandha and subsidies.
Moreover, the government achieved substantial expenditure reduction by cutting down on capital expenses, which amounted to MVR 1.37 million, marking a significant decrease compared to the previous year's figures.
Tax revenue experienced a notable surge, reaching MVR 5.94 billion, reflecting an increase of approximately MVR 400 million compared to the previous year.
In terms of financial allocations, MVR 816 million was directed towards loan repayments, while MVR 198.3 million was deposited into the Sovereign Development Fund as of March 7, underscoring the government's fiscal priorities for the period.