According to statistics released by the Ministry of Finance, government expenditure on subsidies and grants reached MVR 5.2 billion as of May 14th this year. This represents an increase of MVR 1.7 billion, or approximately 48%, compared to the same period last year. The majority of this expenditure was directed towards subsidies, with electricity subsidies specifically rising to MVR 2.2 billion, driven largely by the global surge in fuel prices. Furthermore, over MVR 1 billion has been allocated as block grants to local councils. Notably, expenditures for Aasandha and welfare services have remained consistent with last year’s levels. The government maintains that these subsidies have been instrumental in stabilizing the costs of essential services within the Maldives, despite the rising prices of goods in the international market.
