State payroll spending rises by 10%

The state’s spending on salaries, wages and pensions have risen by 10 percent, according to the latest weekly fiscal report released by the Finance Ministry.

The report, released on Tuesday, shows the total expenditure rose to MVR 14.3 billion as of April 30. This marks a 13.8 percent increase compared to the MVR 12.6 billion in spending the same period last year.

Recurrent expenditure alone rose by 11.1 percent to MVR 12.6 billion.

The spending on salaries, wages and pensions rose to MVR 5.3 billion – marking a 10 percent increase compared to the MVR 4.8 billion spent during the same period last year.

The total revenue and grants also increased, totaling MVR 15.4 billion as of April 30. This marks a 7.5 percent increase compared to the MVR 14.3 billion generated during the same period last year.

The month of April therefore ended with budget surplus of MVR 1 billion.

The Finance Ministry attributed the rise in revenue to an increase in proceeds from Tourism Goods and Services Tax (TGST), which rose from MVR 4.6 billion to MVR 5.1 billion, marking a 11.7 percent bump.

The total tax revenue amounted to MVR 12.3 billion.

The increase in state payroll spending comes after President Dr. Mohamed Muizzu stated last Friday that his administration had created over 23,000 new jobs across public and private sectors.

It also comes amid criticism against the administration over the high number of political appointees it bankrolls.

The administration announced plans to downsize and cut costs following its defeat in the April 4 elections. During a press briefing on April 29, President Muizzu told reporters he plans to reduce political appointments “as much as possible”, but did not provide a specific number.