Friday
22nd Nov 2024
Dhivehi Edition
Finance Minister Ameer.
The Ministry of Finance has revealed that the state will not be receiving the amount of revenue and foreign aid projected in the 2021 budget.
The ministry’s Medium Term Fiscal Strategy shows that the state is expected to receive MVR 20.7 billion in revenue, including MVR 1.5 billion in foreign aid. This year’s budget projected MVR 21.1 in revenue, including MVR 2.2 billion in foreign aid.
The report further stated that at the end of the year, the state’s deficit will total MVR 11.5 billion. In contrast, the budget predicted the state’s deficit to be at MVR 12.3 billion. While the budget deficit is expected to be lowered, the government has reduced the amount to be spent on development projects.
The 2021 budget projected MVR 10.4 billion for development projects. However, the government has now changed the estimate to MVR 6.6 billion.
The decrease in the estimated funding for development projects demonstrates that several projects planned this year will not be conducted.
Although the government has lowered the projected amount of aid and revenue, the government has been reiterating that the Maldivian economy is now improving.