The Ministry of Finance and Public Enterprises has reported that spending on grants and subsidies reached USD 524 million, a 44 percent increase compared with the same period last year when outlays stood at USD 363 million.
According to the Weekly Fiscal Report, as of 13 August the rise was driven primarily by higher fuel prices stemming from the Middle East conflict, which inflated the cost of fuel subsidies for electricity generation. Subsidies alone accounted for USD 220 million–a 78.4 percent surge from USD 123 million a year earlier.
Block grants to local councils followed as the second‑largest expenditure item, totalling USD 90.8 million, up 17 percent from USD 77.8 million in the comparable period.
The Aasandha universal health insurance scheme also saw growth, with USD 84.3 million spent so far this year, a 14 percent increase over USD 71.3 million in 2025. Conversely, medical welfare spending fell to USD 9.66 million, down 23 percent from USD12.58 million last year.
The Ministry emphasised that these subsidies aim to cushion citizens from international price volatility, keeping essential goods and services affordable despite rising global fuel costs.