Government Ends First 25 Days of 2024 with 414 Million MVR Surplus

The first 25 days of the new year ended with a debt-free state budget, according to financial figures.

According to the weekly revenue and expenditure details released by the Finance Ministry, the government spent 562.3 million MVR on debt from January 1st to January 25th this year.

The budget deficit stood at 242.5 million MVR during the same period last year. This year, the budget is in surplus of 414.2 million MVR, including the expenditure of the state debt.

The state budget is rising for two reasons, according to the Finance Ministry figures. The first reason is that the revenue for the same period this year was higher than the same period last year. Revenue stood at 1.7 billion MVR in the previous year, versus 1.8 billion this year. However, the main reason for the budget surplus is that government expenditure has been reduced significantly compared to the previous year. The company spent 1.9 billion MVR last year compared to 1.4 billion MVR this year. That’s about a 25% decrease.

The President, Dr. Mohamed Muizzu, made a presidential promise to reduce budget expenditures and make better arrangements to manage the public debt.