Government proposes MVR 36.9 billion budget for 2022

Finance Ministry Ibrahim Ameer, on Sunday, presented a proposed state budget of MVR 36.9 billion to the Parliament.

The projected total expenditure inclusive of loan repayments and contributions to international financial institutions is MVR 36.9 billion -  whilst the projected total revenue inclusive of revenue and grants is MVR 24.2 billion. This means a deficit of MVR 9.7 billion – which is 11.1 percent of the GDP.

To finance next year’s budget – a total of MVR 13.4 billion needs to be secured. That is the MVR 9.7 billion in deficit, MVR 28 billion needed to repay loans and MVR 805 million needed for other purposes. Sources of revenue proposed to secure these funds are:

• USD 200 million – Through sale of bonds and sukuk to international market
• USD 187 million – Through disbursement loab
• USD 50 million – Through sale of green or blue bonds
• USD 50 million – Through budget support
• MVR 771 million – Through privatization of state-owned companies

EXPENDITURE

The total expenditure after excluding loan repayments and contributions to international financial institutions is MVR 34 billion. The total expenditure is allotted as follows;

• Recurrent expenses – MVR 24.8 billion (67 percent)
• Public Sector Investment Program (PSIP) – MVR 6.2 billion (17 percent)
• Other capital expenses – MVR 5.8 billion (16 percent)

REVENUE

The government is projected to receive MVR 24.2 billion as revenue and grants next year. This includes MVR 15.3 billion as tax revenue and MVR 6 billion in non-tax revenue. It is projected that the government will receive MVR 2.91 billion in grants and other revenue.

Presenting the budget statement – Minister Ameer said that the 2022 budget is designed to shape a midrange sufficient government and to trigger recovery from the impacts of the COVID-19 pandemic as well as to enhance and diversify the Maldivian economy.

In addition to this – the proposed budget will also assist in improving the quality of basic services rendered by the state as well as decentralize the services. Moreover, it will also trigger development on a regional level.

“The budget proposed today will pave way for a comfortable life for the people,” he added.

Minister Ameer added projects and programs required to fulfill over 90 percent of the electoral pledges of this administration will be funded from this budget.