The estimated budget for the year 2023, presented to the parliament by Minister of Finance Ibrahim Ameer, today, has shown that the public debt will be at an alarming MVR 113.6 billion by the end of the year.
Assuming that the revenue targets are met, a state budget deficit of MVR 8.4 billion was estimated. However, in case of revenue shortcomings, the budget deficit is estimated to be close to MVR 14 billion.
According to the proposed budget, the government’s debt for the year 2022 is now at MVR 93.3 billion, which is 98 percent of the country’s GDP.
Additionally, excluding the guaranteed debt for next year, the government’s debt is projected at MVR 101.9 billion, which is a 9 percent raise on this year’s debt undertaking.
The budget stated that the guaranteed debt of the government is estimated at MVR 11.7 billion in 2023. Therefore the country’s direct debt and guaranteed debt totals a staggering MVR 113.6 billion.
According to these numbers, in 2023 the state is believed to acquire an additions MVR 8 billion in debt.