The Maldivian government has raised transfers to local councils by 15.8 percent, according to the Finance Ministry’s latest weekly fiscal report, in one of the sharpest increases across the state’s recurrent spending.
Councils have drawn MVR 1.66 billion (USD 108 million) so far this year. That figure sits MVR 227.2 million (USD 15 million) above the same point in 2025.
The Ministry of Finance and Public Enterprises publishes the Weekly Fiscal Development report, which tracks spending and revenue against the previous year.
Salaries and allowances remain the single largest recurrent line. The government has spent MVR 9.39 billion (USD 609 million) on the public payroll, an increase of 11.1 percent year on year.
Administrative and operational costs climbed 27.0 percent to MVR 15.54 billion (USD 1.01 billion). Grants and subsidies within that heading rose 43.0 percent to MVR 8.47 billion (USD 549 million).
Subsidies alone jumped 76.3 percent to MVR 3.54 billion (USD 230 million) – the steepest rise in the report. Spending on Aasandha, the state health insurance scheme, grew 13.5 percent to MVR 1.43 billion (USD 93 million).
On the capital side, the government put MVR 3.26 billion (USD 211 million) into infrastructure assets, up from MVR 2.99 billion a year earlier. That marks a 9.1 percent increase.
Land and buildings absorbed MVR 1.20 billion (USD 78 million), a rise of 47.1 percent. Harbour and jetty works took MVR 284.5 million (USD 18 million), up 63.9 percent.
Roads, bridges and airports moved the other way. Spending on those projects fell 32.1 percent to MVR 961.3 million (USD 62 million).
The ministry said revenue continues to grow year on year, driven by receipts from the main taxes. Maldives council grant spending has risen alongside that revenue growth, together with outlays on public service and infrastructure projects.
The numbers point to a state expanding on both sides of the ledger. Subsidy costs and the wage bill are pulling recurrent spending higher, while Maldives council grant spending shifts more money toward island administrations.