Published analysis
Read the full article on Maldives News: Subsidies blow past the full-year budget with five months left
Standfirst. The state spent MVR 3.19 billion on subsidies by July 23, about 10 percent over the whole 2026 allocation, with fuel the biggest item.
Key facts
- Subsidies reached MVR 3.19bn by July 23, 2026, about 10 percent over the roughly MVR 2.9bn allocated for the whole year, per the Finance Ministry’s weekly fiscal report; spending is up 77 to 79 percent year on year depending on the outlet.
- Fuel is the biggest subsidy item, with extra support flowing to STO to hold pump and electricity prices flat; Aasandha has used MVR 1.2bn of its MVR 2bn allocation.
- Revenue and grants reached MVR 24.11bn by July 23 (up 10.9 percent) but spending grew to MVR 25.5bn (up 19.7 percent), producing a MVR 1.37bn deficit against a MVR 437.3m surplus a year earlier.
- Loan repayments hit MVR 9.35bn by July 23, up 157 percent from MVR 3.63bn a year earlier, nearly equal to the MVR 8.5bn wage bill for the period.
- June food inflation ran at 7.28 percent year on year against a 2.56 percent headline rate, per Maldives Bureau of Statistics figures released July 28.
Signals & links
Sovereign Debt · Government Fiscal Position · Ministry of Finance · State Trading Organisation · Maldives Economy