Budget deficit increases to MVR 3.2 billion by end of November

Finance Ministry records show the budget deficit to have increased to MVR 3.2 billion by the end of November this year.

The monthly income/expenditure report released by Finance Ministry shows over MVR 25 billion to have been spent from the budget from January to November.

BUDGET RECORDS (JANUARY-NOVEMBER 2019)

• 2019 state budget: MVR 31.9 billion

Total income and grants: MVR 21.8 billion

• Tax income: MVR 15.1 billion
• Non-tax income: MVR 5.67 billion
• Grant assistance: MVR 1.08 billion

Total expenditure: MVR 25.05 billion

• Recurrent expenditure: MVR 18.97 billion
• Capital expenditure: MVR 6.68 billion

A significant percentage of the state expenditure in the first 11 months of the year had been spent on recurrent expenditure – mainly on salaries, allowances and pensions.

Meanwhile, MVR 3.5 billion out of the total capital expenditure had been spent on Public Service Investment Program (PSIP) projects, and MVR 1.78 billion on development projects.

The records also reveal the income earned in November 2019 had been 10.9 percent lower than the income earned in November 2018. This decrease in income has been attributed to a 17.1 percent fall in income from company dividends and interest – which contributes to non-tax income, and a 3.1 percent fall income from import duty – which contributes to tax income.

Meanwhile, the expenditure rose by 25.5 percent compared to November 2018. This increase has been attributed to an increase in PSIP and lendings – which drove up capital expenditure, and a 7.3 percent increase in spending on salaries and wages – which drove up recurrent expenditure.