Maldives Government Sees Drop in Capital Spending by MVR 1.5 Billion Amid Rising Recurrent Expenditure

The Maldives government is witnessing contrasting trends in its expenditure patterns, with capital spending experiencing a notable decline while recurrent expenditure sees a rise, as per the latest statistics released by the Ministry of Finance.
Reportedly, the state's capital expenditure has decreased by MVR 1.5 billion compared to the previous year's figures, standing at MVR 2.06 billion for the same period in 2024. This reduction contrasts with last year's capital spending of MVR 3.64 billion.
This year's capital expenditure encompasses investments in Public Sector Investment Programme (PSIP) projects, which have also seen a significant drop from MVR 2.88 billion to MVR 1.13 billion.
In contrast, recurrent expenditure has surged from MVR 6.75 billion to MVR 6.88 billion for the same period, indicating a heightened financial commitment in ongoing operational costs.
Despite the decrease in capital spending, the Maldives government has reported a higher revenue compared to the previous year, with an additional MVR 500 million generated in tax revenue, totaling MVR 7.88 billion.
With the People's Majlis approving a budget of MVR 49.86 billion for the year, these expenditure trends underscore the evolving financial landscape of the Maldives government in 2024.