The current administration of President Dr. Mohamed Muizzu marked its six-month milestone yesterday, and despite the many challenges it faces, the financial and economic outlook of the country appears promising.
The biggest challenge faced by the government remains the state debt, with the total debt at MVR 124 million by the end of 2023. Despite the heavy debt, the government took the bold step of halting money printing and managing expenses strictly from revenue, a decision that has yielded positive results, as reflected in current financial figures.
Earlier this year, the government expenditure was below revenue as a result of the measures taken to reduce spending. Although expenditure is currently higher than revenue, the figure is still lower compared to the same period last year. According to the Finance Ministry, the government expenditure so far this year stands at MVR 15.2 billion, down from MVR 17.1 billion in the same period last year. Excluding loan expenditure, this year’s figure is MVR 14.3 billion, compared to MVR 16.1 billion last year.
Statistics show that expenditure stood at MVR 7 billion from November 17 last year-- when the government took over administration-- to the end of last year. Over the past six months, the government has received MVR 15.5 billion in revenue, including more than MVR 3 billion from November 17 to the end of the year, and MVR 12.4 billion so far this year.
While the state has succeeded in keeping expenditure almost on par with revenue this year, increasing tourist arrival numbers have raised hopes of further bolstering the economy. The current economic situation in the Maldives indicates that the government is on track to achieve economic recovery.
