The Ministry of Finance has revealed that a total of USD117 million was spent on medical services last year through Aasandha Company Limited, exceeding the approved budget.
As per the Budget Outcome Statement of 2022, the largest amount of recurrent expenditure went towards government assistance and subsidies, with an approved budget of USD311 million for these categories. In an attempt to curtail spending on the Aasandha healthcare insurance scheme, various measures were incorporated into last year's budget. The measures involved establishing a maximum retail price for medicine and terminating the exclusivity granted to medicine importers by the Maldives Food and Drug Authority (MFDA).
Statistics showed that there has been no implementation of these measures, resulting in a significant surge in expenditure on the Aasandha scheme last year. Aasandha had allocated USD47 million to reduce expenditure. However, the amount was supplemented by USD59 million due to increased spending, culminating in a total expenditure of USD117 million by the end of 2022.
Statistics also showed that expenditures on medical assistance, both within the Maldives and abroad, experienced a substantial increase last year. While USD4.9 million was earmarked for welfare assistance, the actual spending amounted to USD13.2 million. Similarly, the budget for overseas medical aid was set at USD2 million, but by year-end, the expenditure had increased to USD5.9 million.