Tuesday 19th Oct 2021
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Finance minister Ameer

Budget Deficit Reaches MVR 6.8 Billion

Figures published by the Ministry of Finance show that the budget deficit has reached MVR 6.8 billion this year.
The ministry’s weekly figures on the state’s expenditure and revenue show that the government has received MVR 11.2 billion in revenue by August 26, 2021. However, state expenditure within the duration was MVR 18.1 billion.
In addition to revenue, the government has been acquiring loans to settle its expenses. This includes selling bonds, and taking loans from neighboring nations and international financial institutions.
While the government has expended MVR 18.1 billion, MVR 14.1 billion was spent on recurrent expenses. Expenditure on salaries, benefits, and pensions within the period totaled MVR 6.4 billion.
MVR 1.7 billion was spent on development projects and an additional MVR 1.7 billion on infrastructural assets. Capital expenses amounted to MVR 3.9 billion, a decrease from the MVR 5.8 billion spent the previous year.
The state has spent MVR 600 million on loan repayment so far. As debt continues to increase, the state continues to obtain loans to fund its numerous activities.