Expenditure on government subsidies in the first 14 weeks of the year was USD 71.3 million, down 21 percent from the same period last year, the Ministry of Finance and Planning figures showed.
According to the Ministry’s ‘Weekly Fiscal Developments’ figures, State expenditure on grants, contributions and subsidies totaled USD 207.5 million as opposed to USD 220.5 million in the same period last year.
The figures showed that the bulk of this expenditure went towards government subsidies with USD 71.3 million during the period. The same period last year saw the State spend USD 84.3 million on government subsidies.
Despite the slump in spending for overall government subsidies, expenditure on the universal health insurance scheme, Aasandha, has increased compared to last year.
The State has spent USD 47.7 million on Aasandha so far this year as opposed to the USD 42.6 million in the same period last year. The decline in subsidy expenditure was primarily due to lower global fuel prices.
In addition, grants to local councils have also declined. According to the weekly report, USD 48.7 million was spent on grants to councils during the same period last year in contrast to USD 46.5 million so far this year.
According to the Weekly Fiscal Development Report, the State has received 35.8 percent of the estimated revenue and grants earmarked in this year’s State budget.
Tax income accounted for 78 percent of the total State revenue, with tax collections of USD 719.8 million so far this year. The report showed that 79.2 percent of tax revenue came from value added tax, corporate income tax and import duty.
As of 8 May, 25 percent of the total expenditure estimated for the year has been exhausted. This is a 21.8 percent decrease compared to the previous year.