Government subsidy spending reaches MVR 4.3 billion, 50% above budget

Government spending on subsidies so far this year has reached MVR 4.3 billion, exceeding the amount budgeted by 50 percent.

The subsidy budget for 2026 was MVR 2.8 billion, according to Finance Ministry statistics.

Subsidies also overran last year. MVR 4.9 billion was spent in 2025 against a budget of MVR 1.9 billion, with the low allocation reflecting planned subsidy reforms that the government later dropped.

The 2026 budget set aside MVR 1 billion for fuel subsidies. Fuel costs have risen because of the war in the Middle East.

The transport subsidy stands at MVR 250 million this year, down from MVR 918 million in 2025. The electricity subsidy is MVR 730 million, about 45 percent higher than last year, while the food subsidy is MVR 344 million, a fall of 25 percent.

Other subsidies account for MVR 1 billion, compared with MVR 247 million in 2025, a rise of about 305 percent.

The fish price control subsidy is MVR 280 million, MVR 62 million lower than before. For sewerage, MVR 135 million was budgeted, with a further MVR 35 million added.