Finance Ministry projects MVR 40 billion budget for next year

Members of the previous Parliament's Budget Committee. October 28, 2019: Finance Ministry has estimated that the state budget for 2020 to stand at MVR 40 billion. (Sun Photo/Mohamed Afrah)

Finance Ministry’s projections have shown that next year’s state budget will be increased to MVR 40 billion.

The published “2022-2020 Fiscal Strategy” by the Ministry estimates that the state budget will stand at MVR 39.55 billion and around MVR 30.73 billion is projected to be received in the form of grants and profits.

While the government expenses are projected to rise to MVR 37 billion, the recurrent cost is expected to stand around MVR 20 billion. Capital cost is projected at MVR 11.7 billion.

The Ministry also stated that it had assurances that the Indian government bonds and T-bills mounting up to MVR 1.5 billion will be transformed into grants. The Ministry has expects that MVR 5.5 billion will be spent on new projects, policies, and recurrent programs as well as to reach the targets set by the government.

The Fiscal Strategy is presented to the Parliament by the Ministry once a year. The statement was presented to the government on July 31 and contained information and estimates up until June 2019.