State Expenditure Declines 18.4% by Mid-September

State budget expenditure has declined by 18.4 percent compared to the same period last year, according to the Ministry of Finance and Planning’s Weekly Fiscal Development Report.As of 18 September ...

Mohamed Hilmy

23 September 2025, 00:00

State budget expenditure has declined by 18.4 percent compared to the same period last year, according to the Ministry of Finance and Planning’s Weekly Fiscal Development Report.

As of 18 September 2025, total expenditure stood at MVR 26.6 billion. Recurrent expenditure dipped by 0.2 percent, while capital expenditure saw a steep drop of 134.3 percent.

Within recurrent expenditure, 58.4 percent was allocated to the administrative operations of government offices, down 3.7 percent from last year. Spending on office supplies decreased by 16.6 percent, repairs and maintenance by 18.8 percent, and travel costs by 3.6 percent. Grants and subsidies were also reduced by 7.7 percent.

Meanwhile, loan repayments surged to MVR 4.3 billion, a 55.8 percent increase compared to MVR 1.9 billion during the same period in 2024. The ministry attributed this rise to higher interest costs on government borrowings.

Capital expenditure reached MVR 3.5 billion, with MVR 3 billion directed towards infrastructure assets such as roads, bridges, and airports. Under the Public Sector Investment Programme (PSIP), MVR 4.2 billion has been spent so far this year, out of the MVR 12.4 billion budgeted for 2025. Transportation projects accounted for the largest share at MVR 2.6 billion, followed by housing projects at MVR 135.9 million.

Despite the expenditure slowdown, the budget recorded an overall surplus of MVR 741.2 million by mid-September.

State Expenditure Declines 18.4% by Mid-September

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