Government spending on subsidies has climbed to MVR 3.13 billion as of 16 July, an 86 percent increase compared to the same period last year, driven largely by higher fuel and electricity subsidy costs, according to the Ministry of Finance and Public Enterprises.
The Ministry’s latest Weekly Fiscal Report shows subsidy expenditure rose sharply from MVR 1.7 billion recorded during the corresponding period last year. The increase is mainly attributed to rising global refined oil prices linked to the ongoing conflict in the Middle East, which has significantly increased the cost of maintaining domestic fuel prices.
Fuel subsidies accounted for the largest share of government spending, reaching MVR 1.8 billion, up 61 percent from MVR 702.1 million during the same period last year.
Electricity subsidies also increased substantially, rising from MVR 341.3 million to MVR 626.7 million. Waste management subsidies nearly tripled, climbing from MVR 33.9 million to MVR 90.6 million, while transport subsidies increased from MVR 128.5 million to MVR 201.6 million. Food subsidies also rose, reaching MVR 243.9 million compared with MVR 199.4 million a year earlier.
In contrast, fisheries subsidies declined significantly, falling from MVR 207.4 million to MVR 83.1 million. Sewerage service subsidies stood at MVR 67.8 million, unchanged from the previous week.
The Maldives maintains price controls on a range of essential goods and services, including staple foods, electricity, fuel used for power generation, transport, and waste management, to keep them affordable for the public. The government covers the gap between the actual cost of providing these services through State-Owned Enterprises and the regulated prices paid by consumers.
The Ministry said fuel and electricity subsidies continue to account for the largest portion of total subsidy expenditure this year as the government seeks to shield households and businesses from rising global energy costs.
