Maldives Government Presents Supplementary Budget of MVR 5.1 Billion, Aiming for Total Revenue of MVR 34.2 Billion

The Maldives government has introduced a supplementary budget of MVR 5.1 billion to address rising public expenditure needs for the current fiscal year. Finance Minister Moosa Zameer presented the budget, highlighting that the original MVR 49.8 billion budget passed by the previous administration did not align with the current government's vision.

The supplementary budget seeks to increase the estimated revenue and grants for the fiscal year to MVR 34.2 billion, reflecting an increase of MVR 640.1 million from the previously projected MVR 33.5 billion. This adjustment also raises the overall budget deficit to MVR 18 billion, representing 16% of the GDP, with the state's debt expected to reach 118% of GDP by year-end.

Key allocations in the supplementary budget include MVR 650 million for contingency funds, MVR 458 million for student loans, MVR 200 million for medical consumables, and MVR 2 billion to ensure uninterrupted implementation of Public Sector Investment Projects (PSIP). The Finance Minister noted the increased costs of medical services and reagents, necessitating additional funding.

To finance the supplementary budget, the government plans to raise MVR 1 billion through foreign loans and MVR 3 billion domestically, with revenue receipts currently standing at MVR 27 billion as of September. New import duty rates on cigarettes and bidis, effective November 1, 2024, are expected to enhance revenue collections further. With additional measures from President Mohamed Muizzu, the government anticipates collecting MVR 61.6 million in taxes, MVR 199.3 million in grants, and MVR 379.2 million in other income.