The state budget has spent MVR 1.7 billion on government-owned companies up to November 20, according to official figures from the Ministry of Finance.  
This is MVR 175 million more than last year and MVR 1.3 billion higher than the MVR 378 million allocated in this year’s budget. The figures highlight the government’s heavy spending on state-owned enterprises (SOEs), many of which continue to operate at a loss while carrying billions in debt.  
Audit reports have repeatedly flagged concerns about corruption and mismanagement in SOEs, with allegations that they are used for political purposes. The recently released Fenaka Corporation audit report underscored significant governance issues, adding to public scrutiny.  
According to Finance Ministry data, the total debt of government companies stood at MVR 54 billion by the second quarter of last year. These companies collectively employ around 36,000 staff, making them one of the largest employment bases in the country.  
Despite their financial struggles, the government has continued to award major projects to SOEs. Official records show that 22 companies are fully government-owned, out of more than 30 SOEs operating in the Maldives.  
The Finance Ministry’s weekly fiscal update also shows:  
Cumulative expenditure reached MVR 35 billion by November 20, with subsidies driving the latest increase.  
Cumulative revenue and grants stood at MVR 33.5 billion, leaving an overall deficit of MVR 1.52 billion.  
Public Sector Investment Program (PSIP) spending fell to MVR 7 billion, compared to nearly MVR 9.6 billion in the same period last year.  
The mismatch between budget allocations and actual spending on SOEs underscores the fiscal strain they place on the state.