Finance Minister Ahmed Munavvar has presented the projected state budget for 2018 with an amount of MVR 28 billion at Wednesday's parliament session.
The upcoming year's budget is expected to hit a deficit at the year end with a total of MVR 2.5 billion (3.8% based on GDP ratio) while the current year's deficit will hit MVR 1.4 billion.
Amid continued protesting by opposition lawmakers, Finance Minister read the planned budget for 2018 and added the state expenditure will reach MVR 24.9 billion with an estimated income of MVR 22.4 billion generated within the next year's run.
According Minister Munavvar, the state budget of 2018 has been devised with top priority directed to government initiated development projects. He said "next year's budget will assure the continuity of urban development without any hindrances."
Finance Minister also focused on increasing the national productivity ratio and increase economical gain for the citizens.
2018 budget estimations
- Recurrent expenditure: 56% (MVR 16.1 billion)
- Subsidies: 12%
- Capital expenses: 43%
- PSIP (Public Service Investment Program): 59%
Recurrent expenses will include salaries and pensions of government employees. 23% of the budget is allocated for general service provision while 9% of the recurrent expenditure will be allocated for loan settlements.
Minister Munavvar forecast the Gross Domestic Product (GDP) per capita will reach USD 10,000 by 2018's end. He also added the economic progression trajectory is significantly faster than more economically established countries in the world.
"Economic progression will pick up pace by 6.8% by the end of current year while it will increase by another 6% in 2018 and will be suspend in a constant rate," Munavvar said. He also added that the inflation rate in Maldives reached 3.4% in 2017 while it will be sustained at 3.1% next year.
Finance Minister had furthermore estimated the country's national reserve will hold USD 600 million by 2018's fiscal end. This year, the amount reached USD 500 million.
In Wednesday's parliament session, Finance Minister Munavvar had affirmed the state will spend vigorously in debt recovery compared to past years and governments.
State revenue for 2017 had been registered at MVR 18.6 billion while state expenditure reached MVR 25.3 billion, resulting in a debt of MVR 6.8 billion.
