Saturday 20th Jul 2024
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Budget deficit

Maldives' Budget Deficit Reaches MVR 1 Billion

The state budget deficit has risen above one billion Rufiyaa according to statistics published by the finance ministry.
According to the statistics published by the ministry on a weekly basis, the state has generated from January till the 18th of March a total sum of 3.7 Billion Rufiyaa as revenue. In the same period, the state has spent 4.9 billion Rufiyaa. Hence, the budget deficit has risen above the threshold of a billion Rufiyaa in this period.
The budget deficit during the same period in 2020 was low compared to this year. The Finance ministry's statistics show that the budget deficit was 786.8 million Rufiyaa during that period. The main reason for this year's increase in the budget deficit is due to the increased government spending despite the reduction in revenue.
The tax revenue earned this year has also declined by one billion Rufiyaa compared to last year. Last year the state earned 4.1 billion Rufiyaa in tax revenues while this year it was 3.7 billion Rufiyaa. Non tax revenues also declined year on from 912 million Rufiyaa to 565 million Rufiyaa this year.
This year's budget forecasts a high deficit compared to the previous years.