Govt Deficit Rises to MVR 777.2 Million

As of March 4 of this year, the State's expenses has exceeded its income by MVR 777.2 million.

According to statistics published by the Ministry of Finance, the State's income between 1 January and 4 March had been MVR 3.14 billion and the State's expenditure in that period had been MVR 3.75 billion. Although the Maldivian government's budget has always been in deficit, such a wide gap has not appeared so early in the year.

For instance, last year's deficit had been MVR 55.8 million.

Although the government's income had been diminished as a result of the COVID-19 pandemic, government spending had not decreased. Many political appointments had been made since the outbreak of COVID-19 in the Maldives.

Several international organizations have commented that the gradually increasing budget deficit could lead the government to bankruptcy.