State incomes take a hit of MVR 2.3 billion

Finance Ministry has published statistics that show a reduction of MVR 2.3 billion in state income within this year.

The figure was calculated compared with the same period last year. Income, as well as financial aid received by the state within this year, accounts for MVR 5.3 billion. The figure for last year was MVR 7.6 billion.

The statistics also showed that MVR 7 billion was spent as state expenditure so far this year. The state received MVR 4.5 billion as taxes in 2020, when compared with MVR 5.4 billion last year.

GST accounts for most of the state income with MVR 2.6 billion. The Tourism tax, Airport Development Fee as well as Airport Service Charges have been drastically reduced as the industry is at a complete standstill due to the pandemic COVID-19 virus.

The Maldives received MVR 257 million as Airport Service Charge last year, while this year the figure stood at a meager MVR 188.4 million. Development fees were also reduced to MVR 189 million from MVR 259 million last year.

GST collected from the Tourism industry earned the state MVR 1.4 billion, which is also a reduction when compared with the MVR 1.7 billion collected last year. Green taxes collected last year had accounted for MVR 279 million, while in 2020 the figure stands at MVR 241 million.

MVR 448.5 million was spent as loan repayments, showed the Finance Ministry statistics. Aasandha healthcare scheme cost the government by MVR 415.4 million while the allocated budget for the scheme in 2020 is MVR 950.8 million.

State expenses for the year are calculated at MVR 7.1 billion, which is a reduction when compared with the same period last year where MVR 7.2 billion was calculated.

Despite the state budget for 2020 estimating an income of MVR 29 billion, the situation in the country has led reconsideration of the figure where an estimated MVR 15 billion is expected. The state budget for 2020 is MVR 37 billion.