Thursday
2nd May 2024
Dhivehi Edition
Finance Minister Ameer. Photo: Majlis
Grant revenue generated by the government for this year, far less than the amount estimated in the 2022 annual budget, while only two months remains until the end of the year.
According to the Weekly Fiscal Developments released by the Ministry of Finance, the government received a total of MVR 308.1 million in grants by October 20. They estimated in this year’s budget that the state will acquire MVR 2.9 billion in grants this year.
When the government realized the overestimate, the ministry reevaluated the numbers.
The “Medium Term Fiscal Strategy 2023-2025” report published by the Ministry of Finance stated that the government now expects to receive MVR 1 billion in free foreign aid this year.
Although the government’s new estimate is MVR 1 billion in financial assistance, so far the state has received only MVR 301 million in financial aid. Therefore, only 10 percent of the estimated target was reached.
The report stated that the government will receive USD 37.5 million (MVR 578 million) from the Abu Dhabi Fund.
Even after the addition of the funds, the free financial aid will total MVR 849 million, making it highly likely that the government will fall short of their new estimate for the year as well.
Furthermore, the government has budgeted MVR 2.4 billion in grants for 2023.