Over MVR 1 billion spent on Aasandha in six months

The government has spent more than MVR 1 billion on the Aasandha health insurance scheme in the first half of this year, according to figures released by the Ministry of Finance.

A total of MVR 1.1 billion has been spent so far, accounting for 60 percent of the MVR 1.8 billion allocated in the budget for this year.

During the same period last year, MVR 980 million was spent. By the end of 2024, total expenditure had reached MVR 2.4 billion, exceeding the initial budget by MVR 500 million. The figure stood at MVR 2.3 billion in 2023.

With current trends, this year’s spending is also expected to surpass the allocated budget.

The cost of running Aasandha has more than doubled since 2013, when annual spending was around MVR 1 billion. Over the past five years, the government has spent MVR 9.2 billion on the scheme.

According to the World Bank, Aasandha expenditure rose by 18 percent between 2014 and 2019, while the number of users increased by just 3 percent.

The disproportionate rise in costs has largely been attributed to increased prices for medicine and healthcare services, rather than a rise in the number of users.

International financial institutions have raised concerns over the scheme’s sustainability, urging the government to adopt long-term solutions to curb rising costs.

Although the government introduced cost-cutting measures earlier this year, their implementation has been postponed due to public concerns.