Govt. presents MVR 34.79 billion budget for 2021

Finance Minister Ibrahim Ameer, on Monday, presented a proposed state budget of MVR 34.79 billion to the Parliament.

The projected total expenditure, inclusive of loan repayments and contribution to international financial institutions is MVR 34.79 billion, while the projected total revenue, inclusive of revenue and grants is MVR 17.79 billion – meaning a deficit of MVR 15.50 billion – which is 23 percent of the GDP.

Sources of revenue to proposed to bridge the deficit:

• USD 300 million (MVR 4.63 billion): Through sale of bonds and sukuk to international market
• USD 100 million (MVR 1.54 billion): Through sale of green or blue bonds
• USD 150 million (MVR 2.31 billion): Through loans from foreign countries and international financial institutions
• MVR 3.7 billion: Through sale of bonds to the domestic market
• MVR 462 million: Through privatization of state-owned companies

EXPENDITURE

The total expenditure, after excluding loan repayments and contributions to international financial institutions, is MVR 33.29 billion.

62 percent of the total expenditure, making for MVR 21.66 billion, is allocated for recurrent expenditure. 24 percent of total expenditure, making for MVR 8.1 billion, is allocated for infrastructure development or Public Sector Investment Program (PSIP) projects. And MVR 4.82 billion is allocated for other capital expenditure.

REVENUE

The state is projected to receive MVR 17.79 billion as revenue and grants. This includes MVR 9.82 billion in tax revenue and MVR 5.75 billion in non-tax revenue. The state is projected to receive MVR 2.21 billion in grants and other revenue.

Presenting the budget statement, Finance Minister Ameer said the 2021 budget is designed to trigger fast recovery from the economic and social impact of the COVID-19 pandemic and implement the key policies of the Jazeera Raajje manifesto, as well as rebuilding and diversifying the Maldivian economy.

“You will see solutions for the difficulties facing the people and businesses due to COVID-19 in this budget,” he said.