National budget of MVR 34.7 billion proposed to parliament

The Finance Ministry on Monday proposed a national budget of MVR 34.7 billion for the upcoming year.

According to Finance Minister, Ibrahim Ameer, the budget for the upcoming year focuses on rebuilding the nation both economically and from a social aspect in the aftermath of the COVID-19 pandemic. The budget will focus on implementing its ‘island-style Maldives’ manifesto and its important policies, said the minister. This includes development and the decentralization of services, he added. The budget will also extend support to businesses affected by the COVID-19 pandemic, and will rebuild the economy by obtaining financing through cutting the government’s expenses. The 2021 budget also heavily focuses on social security, he added.

According to the proposed budget, a tax revenue of NVR 9.8 billion is expected while another MVR 5.7 billion is expected as revenue from non-tax sources. Grant aid and other assistance amounting up to MVR 2.2 billion is also expected.

While the recurrent expenses are expected to be maintained at MVR 21.6 billion, MVR 8.3 billion is expected to be spent on PSIP projects. Other capital expenses are expected to incur MVR 4.8 billion as cost.

Although the revenue expected for 2021 are comparatively low, the amount still exceeds the current year’s figures by 21 percent, said the minister. The state revenue is expected to stabilize and return to normalcy by 2023, he estimated.