Public Spending Tracker: what the Government spends, and what it got for it
Rs 266.7bn planned for 2026-27. Where each rupee goes, how spending has grown since 2023, what was planned versus what was spent, what the auditor found, and the latest decisions that change the numbers.
In short
The Government plans to spend Rs 266.7 billion in 2026-27 (July 2026 to June 2027): 31.6% of GDP, or about Rs 211,000 per resident. Revenue is expected at Rs 235.5bn, leaving a deficit of Rs 31.2bn (3.7% of GDP).
Spending has risen from Rs 202.1bn in 2023-24 to Rs 266.7bn: +32% in three years, while consumer prices rose about 12% over the same period.
Two items take almost two thirds: social protection, mainly pensions (Rs 89bn), and general public services including interest (Rs 78bn). Education gets Rs 26bn and health Rs 21bn. Interest on the debt (Rs 30bn) now costs more than all capital investment (Rs 26bn).
Last year the plan was not met: revenue came in Rs 20.4bn below budget, so even with Rs 11.3bn less spending the deficit reached 6.0% of GDP instead of 4.9%.
Latest: the Chagos money (Rs 10.6bn budgeted) has not arrived as of October 2026; dropping the pension means test adds about Rs 6.2bn; and the National Audit Office's 2024-25 report found weak controls across ministries.
How to read this tracker
This tracker follows the central government budget: the money voted by the National Assembly each year and spent by ministries and departments. The fiscal year runs from 1 July to 30 June. It does not include the separate accounts of state-owned companies (CEB, CWA, Airport Holdings…) except where they receive grants from the budget.
Figures come from the Budget Speech and its Annex, as summarised in the MCCI Budget Highlights, from the National Audit Office, and from statements in Parliament. Every number links to its source at the bottom of the page. We update this page when new official figures are published; the date of the last update is shown above.
Spending since 2023: the trend
Government spending jumped by a quarter in 2024-25, an election year, from Rs 202.1bn to Rs 252.2bn, while revenue rose much less. The deficit reached 9.8% of GDP. Since then spending has been held roughly flat in 2025-26 and is planned to rise 7% in 2026-27, while revenue is expected to rise 16%, mostly from companies, excise duties and the Chagos receipts.
In rupees per resident (about 1.26 million people), the Government will spend roughly Rs 17,600 a month for every person in 2026-27: a MoBriefs calculation.
Planned vs actually spent: 2025-26
A budget is a plan. The real test is what happens next. In June 2025 the Government planned to collect Rs 224.0bn and spend Rs 261.4bn. One year later the revised figures were Rs 203.6bn collected and Rs 250.1bn spent. Spending was cut back, but revenue fell short by much more, mainly because growth was lower than forecast (about 3.1% instead of 3.7%) and the Rs 10bn expected from the Chagos treaty did not arrive.
Investment suffered most: the 2026-27 Budget's capital spending of Rs 26bn is described as 34% higher than in 2025-26, which implies only about Rs 19bn was spent against Rs 26bn planned (MoBriefs calculation from the published percentage). Unspent capital budgets mean delayed roads, drains, schools and hospitals.
Where the money goes in 2026-27
By purpose, social protection (Rs 89bn, mostly the universal pension) is the biggest item, followed by general public services (Rs 78bn), which includes running ministries and paying interest on the debt. The largest increases go to health, housing, public order and economic affairs (roads, the port, energy).
The biggest bills, and how they are growing
By type of spending, the fixed costs dominate: wages and salaries of public employees (Rs 49bn, +8%), subsidies and grants to parastatals, schools and households (Rs 45bn, +7%), and interest (Rs 30bn, +12%). Together with pensions, these are hard to cut quickly, which is why consolidation usually falls on investment first.
Interest is the fastest-growing fixed cost: Rs 26bn planned in 2025-26, Rs 30bn in 2026-27. Every rupee of interest is a rupee not available for services.
Debt: what past spending left behind
Deficits are financed by borrowing. Public-sector debt stood at about Rs 682bn (87.8% of GDP) at the end of 2025-26 and is projected to keep rising in rupees, to about Rs 782bn by 2028-29, even as the ratio to GDP falls. The Government's target is below 80% of GDP by June 2029; the previous Budget had promised 79.7% a year earlier.
What the auditor found
The National Audit Office checks how ministries use public money. Its report on 2024-25, published on 20 March 2026 (about 800 pages), concluded that large budgets are allocated but weak governance and monitoring undermine their impact. It flagged inefficient procurement, weak revenue controls, poor contract management and recommendations that are not followed up.
On 15 April 2026 the Prime Minister announced a National Accountability Enforcement Authority to follow up audit findings and recommend sanctions, performance-based budgeting, and a forthcoming Fiscal Responsibility Bill. None of these was yet in force when this page was last updated.
Latest updates
The decisions since the Budget that change what the State will spend or receive.
What to watch next
Mid-year: whether the Chagos receipts arrive before June 2027, and how the Government covers the Rs 6.2bn pension cost. Investment: whether capital projects are actually carried out this time. Accountability: whether the Fiscal Responsibility Bill and the National Accountability Enforcement Authority are created, and whether audit findings lead to action. We will update this tracker as each happens.