State to incur MVR 36 billion loss due to Covid-19

Finance Minister of Maldives, Ibrahim Ameer speaking at the inauguration ceremony of the procurement guidelines and job classification framework for State-owned enterprises. | Photo: Finance Ministry

Malé, Maldives — Finance Minister of Maldives, Ibrahim Ameer has informed that the state income is expected to incur a loss of MVR 36 billion due to Covid-19.

Speaking at the program held to familiarize councillors with the state’s financial regulations, Minister Ameer stated that it is important to be very careful of the expenses as the whole world is currently facing an economic crisis.

Minister Ameer informed that the priority of the council should manage expenses from the allocated block grant and income the council receives. Highlighting that the councils must only spend on things that are absolutely needed, Minister Ameer said that everyone should agree that this is not a time where everything they want can be done.

Minister Ameer stated that due to the situation, the state income has also decreased by a great extent.

According to Medium Term Fiscal Strategy for the year 2020, Minister Ameer stated that from 2020 till 2022, the state income is foreseen to have a loss of MVR 36 billion due to the ongoing Covid-19 pandemic.

It is important to lower the expenses to decrease the problems we will face from this loss, and we must increase the income we receive.

Finance Minister, Ibrahim Ameer

Minister Ameer also spoke about the new opportunities open for councils with the new amendments brought to the Decentralization Act, especially the wide opportunity for councils to open businesses to earn more income. Minister Ameer stated that this would improve the financial situation and take the council to new levels.