The Ministry of Finance has stated that that previously budgeted strategies to increase state revenue have been postponed to next year.
The Medium-Term Fiscal Strategy report published by the ministry stated that most of the revenue-increasing measures planned for 2021 have now been postponed to 2022 as collecting additional taxes and fees will cause difficulties for businesses at this time. Collective incomes have also decreased, and investments are expected to be low.
The report read that the Maldivian economy and tourism sector will return to their pre-COVID states in 2023.
The ministry also noted that considering the current situation, new measures must be taken. The measures include the introduction of a new tax or fee, and increasing the baseline of existing fees and taxes.
According to the report, measures planned for 2020 were postponed due to COVID-19, and measures to be taken in 2021 have been postponed for various reasons.
The budget deficit is expected to increase as the state has not received the projected amount of revenue. Loans taken this year are expected to be higher due to this reason.