Male’, Maldives – The Finance Ministry of Maldives has proposed a state budget of MVR 34.7 billion for the year 2021.
Submitting the proposal to the Parliament of Maldives, Finance Minister Ibrahim Ameer said that the exact value for next year’s budget is MVR 34,787,720,151.
Detailing the proposal, he explained that next year’s expenses are approximated to be MVR 33.3 billion, while a a large portion of the difference between the budget and expenses account for loan repayment.
Minister Ameer added that government income is projected to be low in 2021 and that they expect to receive an estimated MVR 17.8 billion in financial aid and revenue. The 2021 budget is structured to overcome losses suffered in the communities and the economic setbacks caused by Covid-19 and to implement important policies in the “Jazeera Rajje” manifesto.
The main revenue source, income from tax, is expected to be MVR 9.8 billion in 2020. Other non-tax incomes are anticipated to account for MVR 5.6 billion of total government revenue.
Minister Ameer explained that this income value is very low compared to pre-pandemic standards, but that it is a 21% increase from projected 2020 income values. The Finance Minister added that normal revenue levels can only be hoped to be achieved in they year 2023.
Furthermore, he said that even with the lower budget next year, the drastic decrease in revenue will cause a large budget deficit, amounting to MVR 15.5 Billion. And that by the end of 2021, Maldivian debt is expected to be at MVR 82.8 Billion.