Maldives Subsidy Spending Exceeds Annual Budget by MVR1.26 Billion

Maldives government spending on subsidies reached MVR4.15 billion by 24 September, exceeding the allocation for the whole of 2026 by MVR1.26 billion, according to the Finance Ministry’s latest weekly fiscal figures.

The report, published on 1 October, records MVR4,148.3 million in subsidy expenditure against an approved annual budget of MVR2,890 million. Spending was approximately 43.5 per cent above the annual allocation and 77.1 per cent higher than the MVR2,342.3 million recorded at the comparable point last year.

Total government expenditure reached MVR33.56 billion, while revenue and grants amounted to MVR30.21 billion. The ministry reported an overall deficit of MVR3.36 billion, compared with a surplus of MVR499.3 million in the corresponding 2025 period.

The figures cover accumulated transactions from 1 January to 24 September. They are not a forecast of the government’s position at the end of December.

Recurrent Spending Accounts for Most Expenditure

Recurrent expenditure, which includes the continuing costs of government services, stood at MVR28.90 billion. Capital expenditure was MVR4.67 billion.

Salaries, wages and pensions accounted for MVR10.70 billion. Spending on the Aasandha health scheme reached MVR1.75 billion, against an annual allocation of MVR2.02 billion.

Interest expenditure totalled MVR3.80 billion. Excluding interest, the ministry recorded a primary surplus of MVR442.3 million. The primary balance and the overall balance therefore show different positions for the same reporting period.

Annual Budget Separates Spending from Financing

The government’s 2026 budget documents distinguish the total budget envelope from expenditure used to calculate the fiscal balance. The approved expenditure figure shown in the weekly report is MVR49.21 billion, with annual revenue and grants projected at MVR40.37 billion.

The wider budget envelope also includes financing-related items. Loan principal repayments are recorded separately from expenditure in the fiscal report and should not be added to the reported deficit as if they were another operating cost.

The approved budget book sets out annual allocations across government offices, expenditure categories and financing requirements. Those allocations provide the comparison against which the weekly series reports actual transactions entered into the accounts.

The ministry cautions that recorded expenditure reflects transactions posted to its system and may not yet have been settled in cash. It also notes a reporting change from 9 April following the creation of the Judiciary Sectoral Grant, when Department of Judicial Administration expenditure was removed from the budget tables.

The weekly fiscal series is published by the Ministry of Finance and Public Enterprises. The 24 September figures were the latest weekly release available when this article was prepared on 6 October.