Debt per capita will exceed MVR 90,000 by end of next year: MMA

Maldives Monetary Authority (MMA) has said that by the end of 2014, national debt per capita in the Maldives would have reached MVR 92,196.

In its report entitled ‘Professional Opinion by MMA for State Budget 2014’, released today, MMA said that at the end of 2013, national debt stood at MVR 27.7 billion or MVR 82,409 per head; and by the end of 2014, national debt is likely to have increased to MVR 31.5 billion or MVR 92,196 per head.

MMA referred to its Balance of Payments and said that its Current Account would have a deficit of $469.9 million at the end of 2013, which will increase to $562.5 million in 2014.

The reason cited by MMA for this increase in Current Account deficit is the increase in imports, despite an increase in income from tourism.

MMA also highlighted that MVR 12.5 billion out of the total MVR 17.5 billion State Budget proposed for 2014 is recurrent expenses, and advised that recurrent expenses should not exceed MVR 10.2 billion.

Further recommendations made by MMA include urging the parliament to pass the bills on which income proposed for 2014 depend, and providing subsidies to groups that need them only.

MMA also advised the government to minimise its dependence on income from tourism and increase investment in other sectors.