Government spent MVR 555.7 million in excess to revenue during the first quarter of 2013

Financial statements published by the Maldives Monetary Authority (MMA) has shown government had spent MVR 555.7 million in excess to their revenue during the first quarter of 2013.

The central bank’s Monthly Economic Review for the month of April published yesterday shows that the government had earned revenue of MVR 3018.7 million in revenue and had an expenditure of MVR 3574.4 million, which shows that the government had spent MVR 555.7 million in excess to their revenue by the end April this year.

According to the government budget 2013, total revenue, including grants, is projected to increase to MVR 12,608.9 million, while total expenditure, including net lending, is projected to decline to MVR 13,973.0 million. As a result overall deficit is estimated to decline to MVR 1,364.1 million, the report stated.

Broad money increased both on a monthly and an annual basis during March 2013. Reverse repurchase investments of the Open Market Operations had increased on both monthly and an annual basis during March 2013. Total investments in T-bills declined during March 2013 compared to the preceding month.

“Meanwhile, the WAIR (weighted average interest rate) of T-bills of all maturities increased during February 2013 compared to January 2013, with the exception of 182 days T-bills.”

The trade deficit deteriorated during Jan-Mar 2013 when compared to the same period in 2012. This was due to imports registering a greater increase when compared to the increase in exports. The increase in merchandise exports was brought about by the significant rise in fish exports during the period although re-exports declined. According to the balance of payments estimates for 2013, the current account deficit is estimated to increase to US$690.7 million, equivalent to 28 per cent of GDP.

Tourist arrivals rose during Jan-Mar 2013 as compared to Jan-Mar 2012. Other indicators of the tourism sector, except for average stay, also registered increases during this period. Both the volume and earnings on fish exports increased substantially during Jan-Mar 2013 when compared to the same period of 2012. Comparison of prices from March 2012 and March 2012 show that the Maldives inflation rate had gone down by 4.6 percent.