Deficit rises to 4 billion as spending far outstrips revenue

Government spending has far exceeded revenue, pushing the deficit to MVR 4.4 billion, Finance Ministry figures show.

According to the latest Weekly Fiscal Developments report released today by the Finance Ministry, government revenue and grants totalled MVR 32 billion as of last Thursday. This represents a 3 percent increase compared with the same period last year.

Total government expenditure has risen to MVR 36 billion, an increase of 18.3 percent compared with the same period last year.

According to the Finance Ministry report, sharp increases in spending on assistance and subsidies, as well as Aasandha, were among the main reasons for the rise in expenditure.

Spending on assistance and subsidies rose by 44 percent to MVR 10 billion. Of this, subsidy spending increased by 71.8 percent to MVR 4 billion, while spending on Aasandha rose by 23.6 percent to MVR 2 billion.

The Finance Ministry report also shows that spending on salaries and wages increased by 14 percent to MVR 6 billion.