The state will have injected a total of MVR 12.6 billion into State-Owned Enterprises (SOEs) in the form of capital and loans over three years, including expenditures from this year's budget, according to the budget book.
According to figures from the budget proposed by the Finance Ministry for the upcoming year, MVR 5.4 billion was budgeted for SOEs for the three years from 2024 to 2026. However, actual spending on these companies during this period is projected to exceed the budgeted amount by MVR 7.1 billion.
The largest budget overrun occurred last year. While MVR 1.8 billion was allocated, MVR 6.2 billion was actually disbursed to SOEs—an amount 3.5 times higher than the initial projection.
On an annual basis, these figures have been rising consistently from 2023 through 2025. MVR 2.9 billion was provided in 2023, followed by MVR 4.1 billion in 2024. Although the figure surpassed MVR 6 billion last year, it is projected to decrease to MVR 2.2 billion this year.
The proposed budget for next year reflects a further reduction, with the Ministry estimating that the amount can be lowered to MVR 1.98 billion. If achieved, next year will mark the lowest level of state funding for SOEs since 2022.
The budget book justifies these disbursements by stating that they are necessary to provide essential public services at affordable rates.
SOEs have been a focus of public discussion regarding debt levels, efficiency and the extent of state support.
