The government has reported a pronounced reduction in subsidy expenditure during the first half of the year, reflecting a recalibration of fiscal priorities against the backdrop of a reinforced budgetary stance. According to the Weekly Fiscal Development bulletin issued by the Ministry of Finance and Planning, outlays for subsidies fell by 19 percent over the first 26 weeks of the current fiscal year. The report also underscores a positive fiscal balance, with revenues exceeding expenditures as of 17 July.
The government's subsidy expenditure declined markedly, totalling USD 103.78 million during the reporting period, down from USD 136.23 million in the corresponding interval last year. Subsidies continued to represent the largest segment within a broader expenditure classification encompassing grants and contributions, which together amounted to USD 317.82 million this year, down from USD 337.19 million.
Spending patterns across other fiscal components told a more varied story, with allocations to Aasandha, the national health insurance scheme, rising to USD 64.86 million, a 9.9 percent increase year-on-year. Grants distributed to local councils moved in the opposite direction, totalling USD 64.86 million this year, down from USD 77.83 million over the corresponding period in 2024.
The bulletin's details point to a broader improvement in fiscal performance, with government expenditure totalling USD 1.26 billion and cumulative revenue, including foreign aid, rising to USD 1.33 billion, surpassing the USD 1.23 billion collected during the same period last year.