The Finance Ministry has proposed a budget of MVR 36.9 billion for the upcoming year.
The proposed budget was presented to the Parliament by Finance Minister Ibrahim Ameer on Sunday. As per the minister, MVR 34 billion will be spent out of the budget, with MVR 24.8 billion allocated for recurrent expenditure.
The budget is 23 percent higher than the expected revenue for the upcoming year. While the state expects to receive MVR 15.4 billion as taxes, it expects MVR 6 billion as non-tax revenue. A further MVR 2.9 billion is expected as grant assistance.
The budget allocates MVR 6.3 billion for PSIP and MVR 5.8 billion as other expenditures. The state will spend MVR 2.9 billion on loan repayment.
The proposed budget has a deficit of MVR 9.7 billion, 11.1 percent of the country's GDP. An additional MVR 13.4 billion is needed to finance next year's budget. The amount includes the budget deficit of MVR 9.7 billion, MVR 2.9 billion for loan repayment, MVR 769.2 million transferred to the Sovereign Development Fund, and another MVR 35.7 million that the administration must finance in other ways. The government has planned to secure up to MVR 7.5 billion from foreign parties and MVR 5.9 billion from local parties.
