As of 16th of this month, the state’s expenditure on subsidies has reached MVR 3.13 billion, marking a significant 86 percent increase compared to the same period last year. This rise is primarily driven by the escalating costs of fuel and electricity subsidies, following the global surge in fuel prices. Notably, fuel subsidies alone accounted for MVR 1.8 billion of the total expenditure.
Additionally, spending has increased across other sectors, including electricity, waste management, transportation, and food subsidies. Conversely, expenditure on fisheries subsidies has seen a decline compared to the previous year. The government provides these subsidies to bridge the gap between the actual cost of service delivery and controlled market prices, ensuring that essential services remain affordable for the public.
