Government’s losses and write-offs reached MVR 374 million as of October 12, which is thrice more than originally budgeted for 2023.
The Ministry of Finance in its most recent Weekly Fiscal Development said the budgeted total for losses and write-offs in 2023 is MVR 101.2 million; which indicates the actual expenditure for the component has already observed a 270% increase.
It was reported that the budget allocated for losses and write-offs exhausted completely by the first half of 2023.
The government’s losses and write-offs in its recurrent expenditure include compensations provided to public companies and other contractors.
According to the ministry, the losses and write-offs of the government in the last four years reached a total of MVR 1.6 billion.
The government includes losses and write-offs for the compensation it provides to companies for damages incurred by them mainly due to the state terminating or canceling agreements in breach of contract.