The government has allocated more than USD 337.2 million to subsidies and various forms of assistance in the current fiscal year, representing a substantial increase of USD 110.2 million compared to the same period last year, according to the Ministry of Finance and Public Enterprises’ Weekly Fiscal Development Report.
This as of 14 May, represents a staggering 48 percent increase in social spending over the previous year, underscoring the administration's intensified efforts to support citizens amid challenging economic conditions.
The largest portion of this expenditure has been directed toward subsidies, which have reached USD 142.7 million so far this year—a 77 percent increase from the USD 77.8 million disbursed during the equivalent period in 2025.
The government has attributed this dramatic surge to rising oil prices linked to ongoing tensions in the Middle East, which have created significant pressure on global commodity markets. The Ministry emphasised that these subsidy programmes have been essential for maintaining stability in the prices of basic goods and services, thereby shielding consumers from the full impact of volatile international market conditions.
Following subsidies, block grants to local councils constituted the second-largest category of expenditure, with more than USD 64.9 million disbursed to councils thus far this year. This figure represents a 45.7 percent increase compared to the USD 46.6 million provided during the same period last year. Additionally, other grants and assistance programmes have received more than USD 64.9 million in the current year, up from USD 41.5 million in the previous year.
In contrast to the significant increases observed in subsidy and grant categories, healthcare and welfare spending has remained relatively stable. The Aasandha universal healthcare scheme recorded expenditures of USD 52.1 million this year, nearly matching last year's figure of USD 52.3 million. Similarly, direct healthcare spending saw a modest decrease, with USD 5.9 million allocated this year compared to USD 7.3 million in the same period last year.